Correlation Between Amana Bank and Ceylon Hospitals
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By analyzing existing cross correlation between Amana Bank and Ceylon Hospitals PLC, you can compare the effects of market volatilities on Amana Bank and Ceylon Hospitals 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 Amana Bank with a short position of Ceylon Hospitals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amana Bank and Ceylon Hospitals.
Diversification Opportunities for Amana Bank and Ceylon Hospitals
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amana and Ceylon is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Amana Bank and Ceylon Hospitals PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ceylon Hospitals PLC and Amana Bank 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 Amana Bank are associated (or correlated) with Ceylon Hospitals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ceylon Hospitals PLC has no effect on the direction of Amana Bank i.e., Amana Bank and Ceylon Hospitals go up and down completely randomly.
Pair Corralation between Amana Bank and Ceylon Hospitals
Assuming the 90 days trading horizon Amana Bank is expected to generate 16.31 times more return on investment than Ceylon Hospitals. However, Amana Bank is 16.31 times more volatile than Ceylon Hospitals PLC. It trades about 0.05 of its potential returns per unit of risk. Ceylon Hospitals PLC is currently generating about -0.01 per unit of risk. If you would invest 300.00 in Amana Bank on August 27, 2024 and sell it today you would earn a total of 2,000 from holding Amana Bank or generate 666.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 74.07% |
| Values | Daily Returns |
Amana Bank vs. Ceylon Hospitals PLC
Performance |
| Timeline |
| Amana Bank |
| Ceylon Hospitals PLC |
Amana Bank and Ceylon Hospitals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amana Bank and Ceylon Hospitals
The main advantage of trading using opposite Amana Bank and Ceylon Hospitals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amana Bank position performs unexpectedly, Ceylon Hospitals 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 Ceylon Hospitals will offset losses from the drop in Ceylon Hospitals' long position.| Amana Bank vs. Nuwara Eliya Hotels | Amana Bank vs. Eden Hotel Lanka | Amana Bank vs. SERENDIB HOTELS PLC | Amana Bank vs. Galadari Hotels Lanka |
| Ceylon Hospitals vs. Hotel Sigiriya PLC | Ceylon Hospitals vs. Ceylon Hotels | Ceylon Hospitals vs. Galadari Hotels Lanka | Ceylon Hospitals vs. SERENDIB HOTELS 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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