Correlation Between Tangerine Beach and Eden Hotel
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By analyzing existing cross correlation between Tangerine Beach Hotels and Eden Hotel Lanka, you can compare the effects of market volatilities on Tangerine Beach and Eden Hotel 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 Eden Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tangerine Beach and Eden Hotel.
Diversification Opportunities for Tangerine Beach and Eden Hotel
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tangerine and Eden is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Tangerine Beach Hotels and Eden Hotel Lanka in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eden Hotel Lanka 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 Eden Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eden Hotel Lanka has no effect on the direction of Tangerine Beach i.e., Tangerine Beach and Eden Hotel go up and down completely randomly.
Pair Corralation between Tangerine Beach and Eden Hotel
Assuming the 90 days trading horizon Tangerine Beach is expected to generate 1.01 times less return on investment than Eden Hotel. In addition to that, Tangerine Beach is 1.04 times more volatile than Eden Hotel Lanka. It trades about 0.1 of its total potential returns per unit of risk. Eden Hotel Lanka is currently generating about 0.1 per unit of volatility. If you would invest 1,380 in Eden Hotel Lanka on September 3, 2024 and sell it today you would earn a total of 110.00 from holding Eden Hotel Lanka or generate 7.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.87% |
| Values | Daily Returns |
Tangerine Beach Hotels vs. Eden Hotel Lanka
Performance |
| Timeline |
| Tangerine Beach Hotels |
| Eden Hotel Lanka |
Tangerine Beach and Eden Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tangerine Beach and Eden Hotel
The main advantage of trading using opposite Tangerine Beach and Eden Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tangerine Beach position performs unexpectedly, Eden Hotel 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 Eden Hotel will offset losses from the drop in Eden Hotel's long position.| Tangerine Beach vs. Lanka Credit and | Tangerine Beach vs. VIDULLANKA PLC | Tangerine Beach vs. Carson Cumberbatch PLC | Tangerine Beach vs. Peoples Insurance PLC |
| Eden Hotel vs. Lanka Credit and | Eden Hotel vs. VIDULLANKA PLC | Eden Hotel vs. Carson Cumberbatch PLC | Eden Hotel vs. Peoples Insurance PLC |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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