Correlation Between Tangerine Beach and Keells Food
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By analyzing existing cross correlation between Tangerine Beach Hotels and Keells Food Products, you can compare the effects of market volatilities on Tangerine Beach and Keells Food 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 Keells Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tangerine Beach and Keells Food.
Diversification Opportunities for Tangerine Beach and Keells Food
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tangerine and Keells is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Tangerine Beach Hotels and Keells Food Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keells Food Products 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 Keells Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keells Food Products has no effect on the direction of Tangerine Beach i.e., Tangerine Beach and Keells Food go up and down completely randomly.
Pair Corralation between Tangerine Beach and Keells Food
Assuming the 90 days trading horizon Tangerine Beach is expected to generate 2.25 times less return on investment than Keells Food. In addition to that, Tangerine Beach is 1.04 times more volatile than Keells Food Products. It trades about 0.06 of its total potential returns per unit of risk. Keells Food Products is currently generating about 0.13 per unit of volatility. If you would invest 15,500 in Keells Food Products on August 31, 2024 and sell it today you would earn a total of 1,600 from holding Keells Food Products or generate 10.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 80.7% |
| Values | Daily Returns |
Tangerine Beach Hotels vs. Keells Food Products
Performance |
| Timeline |
| Tangerine Beach Hotels |
| Keells Food Products |
Tangerine Beach and Keells Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tangerine Beach and Keells Food
The main advantage of trading using opposite Tangerine Beach and Keells Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tangerine Beach position performs unexpectedly, Keells Food 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 Keells Food will offset losses from the drop in Keells Food's long position.| Tangerine Beach vs. BROWNS INVESTMENTS PLC | Tangerine Beach vs. Keells Food Products | Tangerine Beach vs. Ceylon Guardian Investment | Tangerine Beach vs. RENUKA FOODS PLC |
| Keells Food vs. Tal Lanka Hotels | Keells Food vs. RENUKA FOODS PLC | Keells Food vs. Nuwara Eliya Hotels | Keells Food vs. Kandy Hotels |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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