Correlation Between Hotel Sigiriya and ACL Plastics
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By analyzing existing cross correlation between Hotel Sigiriya PLC and ACL Plastics PLC, you can compare the effects of market volatilities on Hotel Sigiriya and ACL Plastics 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 Hotel Sigiriya with a short position of ACL Plastics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hotel Sigiriya and ACL Plastics.
Diversification Opportunities for Hotel Sigiriya and ACL Plastics
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hotel and ACL is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Hotel Sigiriya PLC and ACL Plastics PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACL Plastics PLC and Hotel Sigiriya 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 Hotel Sigiriya PLC are associated (or correlated) with ACL Plastics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACL Plastics PLC has no effect on the direction of Hotel Sigiriya i.e., Hotel Sigiriya and ACL Plastics go up and down completely randomly.
Pair Corralation between Hotel Sigiriya and ACL Plastics
Assuming the 90 days trading horizon Hotel Sigiriya PLC is expected to generate 2.1 times more return on investment than ACL Plastics. However, Hotel Sigiriya is 2.1 times more volatile than ACL Plastics PLC. It trades about 0.27 of its potential returns per unit of risk. ACL Plastics PLC is currently generating about 0.28 per unit of risk. If you would invest 4,900 in Hotel Sigiriya PLC on October 11, 2024 and sell it today you would earn a total of 2,310 from holding Hotel Sigiriya PLC or generate 47.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Hotel Sigiriya PLC vs. ACL Plastics PLC
Performance |
Timeline |
Hotel Sigiriya PLC |
ACL Plastics PLC |
Hotel Sigiriya and ACL Plastics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hotel Sigiriya and ACL Plastics
The main advantage of trading using opposite Hotel Sigiriya and ACL Plastics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hotel Sigiriya position performs unexpectedly, ACL Plastics 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 ACL Plastics will offset losses from the drop in ACL Plastics' long position.Hotel Sigiriya vs. E M L | Hotel Sigiriya vs. Lanka Credit and | Hotel Sigiriya vs. VIDULLANKA PLC | Hotel Sigiriya vs. EX PACK RUGATED CARTONS |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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