Correlation Between Serendib Hotels and Dolphin Hotels
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By analyzing existing cross correlation between Serendib Hotels PLC and Dolphin Hotels PLC, you can compare the effects of market volatilities on Serendib Hotels and Dolphin 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 Serendib Hotels with a short position of Dolphin Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Serendib Hotels and Dolphin Hotels.
Diversification Opportunities for Serendib Hotels and Dolphin Hotels
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Serendib and Dolphin is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Serendib Hotels PLC and Dolphin Hotels PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dolphin Hotels PLC and Serendib Hotels 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 Serendib Hotels PLC are associated (or correlated) with Dolphin Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dolphin Hotels PLC has no effect on the direction of Serendib Hotels i.e., Serendib Hotels and Dolphin Hotels go up and down completely randomly.
Pair Corralation between Serendib Hotels and Dolphin Hotels
Assuming the 90 days trading horizon Serendib Hotels is expected to generate 1.02 times less return on investment than Dolphin Hotels. But when comparing it to its historical volatility, Serendib Hotels PLC is 1.04 times less risky than Dolphin Hotels. It trades about 0.36 of its potential returns per unit of risk. Dolphin Hotels PLC is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 3,190 in Dolphin Hotels PLC on September 16, 2024 and sell it today you would earn a total of 2,110 from holding Dolphin Hotels PLC or generate 66.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Serendib Hotels PLC vs. Dolphin Hotels PLC
Performance |
Timeline |
Serendib Hotels PLC |
Dolphin Hotels PLC |
Serendib Hotels and Dolphin Hotels Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Serendib Hotels and Dolphin Hotels
The main advantage of trading using opposite Serendib Hotels and Dolphin Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Serendib Hotels position performs unexpectedly, Dolphin 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 Dolphin Hotels will offset losses from the drop in Dolphin Hotels' long position.Serendib Hotels vs. Lanka Credit and | Serendib Hotels vs. VIDULLANKA PLC | Serendib Hotels vs. Carson Cumberbatch PLC | Serendib Hotels 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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