Correlation Between BROWNS INVESTMENTS and CEYLON HOSPITALS
Specify exactly 2 symbols:
By analyzing existing cross correlation between BROWNS INVESTMENTS PLC and CEYLON HOSPITALS PLC, you can compare the effects of market volatilities on BROWNS INVESTMENTS 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 BROWNS INVESTMENTS with a short position of CEYLON HOSPITALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of BROWNS INVESTMENTS and CEYLON HOSPITALS.
Diversification Opportunities for BROWNS INVESTMENTS and CEYLON HOSPITALS
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between BROWNS and CEYLON is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding BROWNS INVESTMENTS PLC 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 BROWNS INVESTMENTS 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 BROWNS INVESTMENTS PLC 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 BROWNS INVESTMENTS i.e., BROWNS INVESTMENTS and CEYLON HOSPITALS go up and down completely randomly.
Pair Corralation between BROWNS INVESTMENTS and CEYLON HOSPITALS
Assuming the 90 days trading horizon BROWNS INVESTMENTS PLC is expected to generate 0.74 times more return on investment than CEYLON HOSPITALS. However, BROWNS INVESTMENTS PLC is 1.36 times less risky than CEYLON HOSPITALS. It trades about 0.01 of its potential returns per unit of risk. CEYLON HOSPITALS PLC is currently generating about 0.0 per unit of risk. If you would invest 620.00 in BROWNS INVESTMENTS PLC on August 27, 2024 and sell it today you would lose (10.00) from holding BROWNS INVESTMENTS PLC or give up 1.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 59.12% |
| Values | Daily Returns |
BROWNS INVESTMENTS PLC vs. CEYLON HOSPITALS PLC
Performance |
| Timeline |
| BROWNS INVESTMENTS PLC |
| CEYLON HOSPITALS PLC |
BROWNS INVESTMENTS and CEYLON HOSPITALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BROWNS INVESTMENTS and CEYLON HOSPITALS
The main advantage of trading using opposite BROWNS INVESTMENTS and CEYLON HOSPITALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BROWNS INVESTMENTS 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's long position.| BROWNS INVESTMENTS vs. Softlogic Life Insurance | BROWNS INVESTMENTS vs. Eden Hotel Lanka | BROWNS INVESTMENTS vs. Kandy Hotels | BROWNS INVESTMENTS vs. Browns Beach Hotels |
| CEYLON HOSPITALS vs. Palm Garden Hotels | CEYLON HOSPITALS vs. Kandy Hotels | CEYLON HOSPITALS vs. Lighthouse Hotel PLC | CEYLON HOSPITALS vs. Arpico Insurance |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |