Correlation Between Mahaweli Reach and Asian Hotels
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By analyzing existing cross correlation between Mahaweli Reach Hotel and Asian Hotels and, you can compare the effects of market volatilities on Mahaweli Reach and Asian Hotels 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 Mahaweli Reach with a short position of Asian Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mahaweli Reach and Asian Hotels.
Diversification Opportunities for Mahaweli Reach and Asian Hotels
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mahaweli and Asian is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Mahaweli Reach Hotel and Asian Hotels and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asian Hotels and Mahaweli Reach 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 Mahaweli Reach Hotel are associated (or correlated) with Asian Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asian Hotels has no effect on the direction of Mahaweli Reach i.e., Mahaweli Reach and Asian Hotels go up and down completely randomly.
Pair Corralation between Mahaweli Reach and Asian Hotels
Assuming the 90 days trading horizon Mahaweli Reach Hotel is expected to generate 2.42 times more return on investment than Asian Hotels. However, Mahaweli Reach is 2.42 times more volatile than Asian Hotels and. It trades about 0.2 of its potential returns per unit of risk. Asian Hotels and is currently generating about 0.13 per unit of risk. If you would invest 1,730 in Mahaweli Reach Hotel on September 22, 2024 and sell it today you would earn a total of 320.00 from holding Mahaweli Reach Hotel or generate 18.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Mahaweli Reach Hotel vs. Asian Hotels and
Performance |
Timeline |
Mahaweli Reach Hotel |
Asian Hotels |
Mahaweli Reach and Asian Hotels Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mahaweli Reach and Asian Hotels
The main advantage of trading using opposite Mahaweli Reach and Asian Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mahaweli Reach position performs unexpectedly, Asian Hotels 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 Asian Hotels will offset losses from the drop in Asian Hotels' long position.Mahaweli Reach vs. Lanka Credit and | Mahaweli Reach vs. VIDULLANKA PLC | Mahaweli Reach vs. Carson Cumberbatch PLC | Mahaweli Reach vs. Peoples Insurance PLC |
Asian Hotels vs. Lanka Credit and | Asian Hotels vs. VIDULLANKA PLC | Asian Hotels vs. Carson Cumberbatch PLC | Asian Hotels vs. Peoples Insurance PLC |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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