Correlation Between Dolphin Hotels and John Keells
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By analyzing existing cross correlation between Dolphin Hotels PLC and John Keells Hotels, you can compare the effects of market volatilities on Dolphin Hotels and John Keells and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Dolphin Hotels with a short position of John Keells. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dolphin Hotels and John Keells.
Diversification Opportunities for Dolphin Hotels and John Keells
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dolphin and John is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Dolphin Hotels PLC and John Keells Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Keells Hotels and Dolphin Hotels is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Dolphin Hotels PLC are associated (or correlated) with John Keells. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John Keells Hotels has no effect on the direction of Dolphin Hotels i.e., Dolphin Hotels and John Keells go up and down completely randomly.
Pair Corralation between Dolphin Hotels and John Keells
Assuming the 90 days trading horizon Dolphin Hotels PLC is expected to generate 1.43 times more return on investment than John Keells. However, Dolphin Hotels is 1.43 times more volatile than John Keells Hotels. It trades about 0.25 of its potential returns per unit of risk. John Keells Hotels is currently generating about 0.2 per unit of risk. If you would invest 3,020 in Dolphin Hotels PLC on August 31, 2024 and sell it today you would earn a total of 1,190 from holding Dolphin Hotels PLC or generate 39.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dolphin Hotels PLC vs. John Keells Hotels
Performance |
| Timeline |
| Dolphin Hotels PLC |
| John Keells Hotels |
Dolphin Hotels and John Keells Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dolphin Hotels and John Keells
The main advantage of trading using opposite Dolphin Hotels and John Keells positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dolphin Hotels position performs unexpectedly, John Keells can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in John Keells will offset losses from the drop in John Keells' long position.| Dolphin Hotels vs. Amaya Leisure PLC | Dolphin Hotels vs. Carson Cumberbatch PLC | Dolphin Hotels vs. National Development Bank | Dolphin Hotels vs. RENUKA FOODS PLC |
| John Keells vs. Tangerine Beach Hotels | John Keells vs. BROWNS INVESTMENTS PLC | John Keells vs. Ceylon Hotels | John Keells vs. Sri Lanka Telecom |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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