Correlation Between Trans Asia and Lanka Realty
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By analyzing existing cross correlation between Trans Asia Hotels and Lanka Realty Investments, you can compare the effects of market volatilities on Trans Asia 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 Trans Asia with a short position of Lanka Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trans Asia and Lanka Realty.
Diversification Opportunities for Trans Asia and Lanka Realty
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Trans and Lanka is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Trans Asia 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 Trans Asia 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 Trans Asia 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 Trans Asia i.e., Trans Asia and Lanka Realty go up and down completely randomly.
Pair Corralation between Trans Asia and Lanka Realty
Assuming the 90 days trading horizon Trans Asia Hotels is expected to generate 0.88 times more return on investment than Lanka Realty. However, Trans Asia Hotels is 1.14 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 0.0 per unit of risk. If you would invest 4,130 in Trans Asia Hotels on August 31, 2024 and sell it today you would lose (10.00) from holding Trans Asia Hotels or give up 0.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 76.57% |
| Values | Daily Returns |
Trans Asia Hotels vs. Lanka Realty Investments
Performance |
| Timeline |
| Trans Asia Hotels |
| Lanka Realty Investments |
Trans Asia and Lanka Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trans Asia and Lanka Realty
The main advantage of trading using opposite Trans Asia and Lanka Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trans Asia 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.| Trans Asia vs. Ceylon Guardian Investment | Trans Asia vs. Browns Beach Hotels | Trans Asia vs. Galadari Hotels Lanka | Trans Asia vs. Lanka Milk Foods |
| Lanka Realty vs. HNB Finance | Lanka Realty vs. Prime Lands Residencies | Lanka Realty vs. Jat Holdings PLC | Lanka Realty vs. E M L |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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