Correlation Between Aitken Spence and E M
Specify exactly 2 symbols:
By analyzing existing cross correlation between Aitken Spence Hotel and E M L, you can compare the effects of market volatilities on Aitken Spence and E M 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 Aitken Spence with a short position of E M. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aitken Spence and E M.
Diversification Opportunities for Aitken Spence and E M
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aitken and EMLN0000 is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Aitken Spence Hotel and E M L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E M L and Aitken Spence 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 Aitken Spence Hotel are associated (or correlated) with E M. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E M L has no effect on the direction of Aitken Spence i.e., Aitken Spence and E M go up and down completely randomly.
Pair Corralation between Aitken Spence and E M
Assuming the 90 days trading horizon Aitken Spence is expected to generate 1.23 times less return on investment than E M. But when comparing it to its historical volatility, Aitken Spence Hotel is 2.1 times less risky than E M. It trades about 0.05 of its potential returns per unit of risk. E M L is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 330.00 in E M L on September 20, 2024 and sell it today you would earn a total of 40.00 from holding E M L or generate 12.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 99.57% |
Values | Daily Returns |
Aitken Spence Hotel vs. E M L
Performance |
Timeline |
Aitken Spence Hotel |
E M L |
Aitken Spence and E M Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aitken Spence and E M
The main advantage of trading using opposite Aitken Spence and E M positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aitken Spence position performs unexpectedly, E M 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 E M will offset losses from the drop in E M's long position.Aitken Spence vs. Lanka Credit and | Aitken Spence vs. VIDULLANKA PLC | Aitken Spence vs. Carson Cumberbatch PLC | Aitken Spence vs. Peoples Insurance PLC |
E M vs. Asian Hotels and | E M vs. Galadari Hotels Lanka | E M vs. Aitken Spence Hotel | E M vs. Ceylon 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Stocks Directory Find actively traded stocks across global markets | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |