Correlation Between Asian Hotels and Ceylinco Insurance
Specify exactly 2 symbols:
By analyzing existing cross correlation between Asian Hotels and and Ceylinco Insurance PLC, you can compare the effects of market volatilities on Asian Hotels and Ceylinco Insurance 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 Asian Hotels with a short position of Ceylinco Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asian Hotels and Ceylinco Insurance.
Diversification Opportunities for Asian Hotels and Ceylinco Insurance
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Asian and Ceylinco is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Asian Hotels and and Ceylinco Insurance PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ceylinco Insurance PLC and Asian 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 Asian Hotels and are associated (or correlated) with Ceylinco Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ceylinco Insurance PLC has no effect on the direction of Asian Hotels i.e., Asian Hotels and Ceylinco Insurance go up and down completely randomly.
Pair Corralation between Asian Hotels and Ceylinco Insurance
Assuming the 90 days trading horizon Asian Hotels and is expected to generate 1.22 times more return on investment than Ceylinco Insurance. However, Asian Hotels is 1.22 times more volatile than Ceylinco Insurance PLC. It trades about 0.05 of its potential returns per unit of risk. Ceylinco Insurance PLC is currently generating about 0.04 per unit of risk. If you would invest 3,890 in Asian Hotels and on September 3, 2024 and sell it today you would earn a total of 1,810 from holding Asian Hotels and or generate 46.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 62.47% |
| Values | Daily Returns |
Asian Hotels and vs. Ceylinco Insurance PLC
Performance |
| Timeline |
| Asian Hotels |
| Ceylinco Insurance PLC |
Asian Hotels and Ceylinco Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asian Hotels and Ceylinco Insurance
The main advantage of trading using opposite Asian Hotels and Ceylinco Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asian Hotels position performs unexpectedly, Ceylinco Insurance 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 Ceylinco Insurance will offset losses from the drop in Ceylinco Insurance's long position.| Asian Hotels vs. Carson Cumberbatch PLC | Asian Hotels vs. Lanka Milk Foods | Asian Hotels vs. Citrus Leisure PLC | Asian Hotels vs. ACL Plastics PLC |
| Ceylinco Insurance vs. Lanka Credit and | Ceylinco Insurance vs. VIDULLANKA PLC | Ceylinco Insurance vs. Carson Cumberbatch PLC | Ceylinco Insurance 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |