Correlation Between Tangerine Beach and Senkadagala Finance
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By analyzing existing cross correlation between Tangerine Beach Hotels and Senkadagala Finance PLC, you can compare the effects of market volatilities on Tangerine Beach and Senkadagala Finance 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 Senkadagala Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tangerine Beach and Senkadagala Finance.
Diversification Opportunities for Tangerine Beach and Senkadagala Finance
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tangerine and Senkadagala is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Tangerine Beach Hotels and Senkadagala Finance PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senkadagala Finance PLC 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 Senkadagala Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senkadagala Finance PLC has no effect on the direction of Tangerine Beach i.e., Tangerine Beach and Senkadagala Finance go up and down completely randomly.
Pair Corralation between Tangerine Beach and Senkadagala Finance
Assuming the 90 days trading horizon Tangerine Beach is expected to generate 1.54 times less return on investment than Senkadagala Finance. But when comparing it to its historical volatility, Tangerine Beach Hotels is 1.36 times less risky than Senkadagala Finance. It trades about 0.02 of its potential returns per unit of risk. Senkadagala Finance PLC is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 36,375 in Senkadagala Finance PLC on August 28, 2024 and sell it today you would earn a total of 1,125 from holding Senkadagala Finance PLC or generate 3.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 44.77% |
| Values | Daily Returns |
Tangerine Beach Hotels vs. Senkadagala Finance PLC
Performance |
| Timeline |
| Tangerine Beach Hotels |
| Senkadagala Finance PLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Tangerine Beach and Senkadagala Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tangerine Beach and Senkadagala Finance
The main advantage of trading using opposite Tangerine Beach and Senkadagala Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tangerine Beach position performs unexpectedly, Senkadagala Finance 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 Senkadagala Finance will offset losses from the drop in Senkadagala Finance's long position.| Tangerine Beach vs. BROWNS INVESTMENTS PLC | Tangerine Beach vs. Sampath Bank PLC | Tangerine Beach vs. RENUKA FOODS PLC | Tangerine Beach vs. SEYLAN BANK PLC |
| Senkadagala Finance vs. Tangerine Beach Hotels | Senkadagala Finance vs. Browns Beach Hotels | Senkadagala Finance vs. Pegasus Hotels of | Senkadagala Finance 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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