Correlation Between Senkadagala Finance and SERENDIB HOTELS
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By analyzing existing cross correlation between Senkadagala Finance PLC and SERENDIB HOTELS PLC, you can compare the effects of market volatilities on Senkadagala Finance and SERENDIB 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 Senkadagala Finance with a short position of SERENDIB HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senkadagala Finance and SERENDIB HOTELS.
Diversification Opportunities for Senkadagala Finance and SERENDIB HOTELS
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Senkadagala and SERENDIB is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Senkadagala Finance PLC and SERENDIB HOTELS PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SERENDIB HOTELS PLC and Senkadagala Finance 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 Senkadagala Finance PLC are associated (or correlated) with SERENDIB HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SERENDIB HOTELS PLC has no effect on the direction of Senkadagala Finance i.e., Senkadagala Finance and SERENDIB HOTELS go up and down completely randomly.
Pair Corralation between Senkadagala Finance and SERENDIB HOTELS
Assuming the 90 days trading horizon Senkadagala Finance is expected to generate 2.3 times less return on investment than SERENDIB HOTELS. But when comparing it to its historical volatility, Senkadagala Finance PLC is 2.14 times less risky than SERENDIB HOTELS. It trades about 0.2 of its potential returns per unit of risk. SERENDIB HOTELS PLC is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 840.00 in SERENDIB HOTELS PLC on September 17, 2024 and sell it today you would earn a total of 390.00 from holding SERENDIB HOTELS PLC or generate 46.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 40.0% |
Values | Daily Returns |
Senkadagala Finance PLC vs. SERENDIB HOTELS PLC
Performance |
Timeline |
Senkadagala Finance PLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
SERENDIB HOTELS PLC |
Senkadagala Finance and SERENDIB HOTELS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Senkadagala Finance and SERENDIB HOTELS
The main advantage of trading using opposite Senkadagala Finance and SERENDIB HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senkadagala Finance position performs unexpectedly, SERENDIB 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 SERENDIB HOTELS will offset losses from the drop in SERENDIB HOTELS's long position.Senkadagala Finance vs. Lanka Credit and | Senkadagala Finance vs. VIDULLANKA PLC | Senkadagala Finance vs. Carson Cumberbatch PLC | Senkadagala Finance vs. Peoples Insurance PLC |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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