Correlation Between Tangerine Beach and Aitken Spence
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By analyzing existing cross correlation between Tangerine Beach Hotels and Aitken Spence Hotel, you can compare the effects of market volatilities on Tangerine Beach and Aitken Spence 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 Aitken Spence. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tangerine Beach and Aitken Spence.
Diversification Opportunities for Tangerine Beach and Aitken Spence
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tangerine and Aitken is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Tangerine Beach Hotels and Aitken Spence Hotel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aitken Spence Hotel 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 Aitken Spence. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aitken Spence Hotel has no effect on the direction of Tangerine Beach i.e., Tangerine Beach and Aitken Spence go up and down completely randomly.
Pair Corralation between Tangerine Beach and Aitken Spence
Assuming the 90 days trading horizon Tangerine Beach is expected to generate 1.21 times less return on investment than Aitken Spence. In addition to that, Tangerine Beach is 2.0 times more volatile than Aitken Spence Hotel. It trades about 0.11 of its total potential returns per unit of risk. Aitken Spence Hotel is currently generating about 0.26 per unit of volatility. If you would invest 7,600 in Aitken Spence Hotel on October 9, 2024 and sell it today you would earn a total of 690.00 from holding Aitken Spence Hotel or generate 9.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Tangerine Beach Hotels vs. Aitken Spence Hotel
Performance |
Timeline |
Tangerine Beach Hotels |
Aitken Spence Hotel |
Tangerine Beach and Aitken Spence Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tangerine Beach and Aitken Spence
The main advantage of trading using opposite Tangerine Beach and Aitken Spence positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tangerine Beach position performs unexpectedly, Aitken Spence 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 Aitken Spence will offset losses from the drop in Aitken Spence's long position.Tangerine Beach vs. E M L | Tangerine Beach vs. Lanka Credit and | Tangerine Beach vs. VIDULLANKA PLC | Tangerine Beach 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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