Correlation Between Tangerine Beach and Lanka Realty
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By analyzing existing cross correlation between Tangerine Beach Hotels and Lanka Realty Investments, you can compare the effects of market volatilities on Tangerine Beach and Lanka Realty 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 Tangerine Beach with a short position of Lanka Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tangerine Beach and Lanka Realty.
Diversification Opportunities for Tangerine Beach and Lanka Realty
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tangerine and Lanka is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Tangerine Beach Hotels and Lanka Realty Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lanka Realty Investments and Tangerine Beach 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 Tangerine Beach Hotels are associated (or correlated) with Lanka Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lanka Realty Investments has no effect on the direction of Tangerine Beach i.e., Tangerine Beach and Lanka Realty go up and down completely randomly.
Pair Corralation between Tangerine Beach and Lanka Realty
Assuming the 90 days trading horizon Tangerine Beach is expected to generate 9.1 times less return on investment than Lanka Realty. But when comparing it to its historical volatility, Tangerine Beach Hotels is 1.61 times less risky than Lanka Realty. It trades about 0.01 of its potential returns per unit of risk. Lanka Realty Investments is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,310 in Lanka Realty Investments on November 4, 2024 and sell it today you would earn a total of 30.00 from holding Lanka Realty Investments or generate 2.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tangerine Beach Hotels vs. Lanka Realty Investments
Performance |
| Timeline |
| Tangerine Beach Hotels |
| Lanka Realty Investments |
Tangerine Beach and Lanka Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tangerine Beach and Lanka Realty
The main advantage of trading using opposite Tangerine Beach and Lanka Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tangerine Beach position performs unexpectedly, Lanka Realty 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 Lanka Realty will offset losses from the drop in Lanka Realty's long position.| Tangerine Beach vs. HNB Finance | Tangerine Beach vs. Prime Lands Residencies | Tangerine Beach vs. Jat Holdings PLC | Tangerine Beach vs. E M L |
| Lanka Realty vs. Peoples Insurance PLC | Lanka Realty vs. COMMERCIAL BANK OF | Lanka Realty vs. National Development Bank | Lanka Realty vs. Softlogic Life Insurance |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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