Correlation Between BROWNS INVESTMENTS and CEYLINCO INSURANCE
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By analyzing existing cross correlation between BROWNS INVESTMENTS PLC and CEYLINCO INSURANCE PLC, you can compare the effects of market volatilities on BROWNS INVESTMENTS 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 BROWNS INVESTMENTS with a short position of CEYLINCO INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of BROWNS INVESTMENTS and CEYLINCO INSURANCE.
Diversification Opportunities for BROWNS INVESTMENTS and CEYLINCO INSURANCE
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BROWNS and CEYLINCO is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding BROWNS INVESTMENTS PLC 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 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 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 BROWNS INVESTMENTS i.e., BROWNS INVESTMENTS and CEYLINCO INSURANCE go up and down completely randomly.
Pair Corralation between BROWNS INVESTMENTS and CEYLINCO INSURANCE
Assuming the 90 days trading horizon BROWNS INVESTMENTS PLC is expected to generate 1.27 times more return on investment than CEYLINCO INSURANCE. However, BROWNS INVESTMENTS is 1.27 times more volatile than CEYLINCO INSURANCE PLC. It trades about 0.15 of its potential returns per unit of risk. CEYLINCO INSURANCE PLC is currently generating about 0.13 per unit of risk. If you would invest 490.00 in BROWNS INVESTMENTS PLC on August 30, 2024 and sell it today you would earn a total of 100.00 from holding BROWNS INVESTMENTS PLC or generate 20.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 93.33% |
| Values | Daily Returns |
BROWNS INVESTMENTS PLC vs. CEYLINCO INSURANCE PLC
Performance |
| Timeline |
| BROWNS INVESTMENTS PLC |
| CEYLINCO INSURANCE PLC |
BROWNS INVESTMENTS and CEYLINCO INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BROWNS INVESTMENTS and CEYLINCO INSURANCE
The main advantage of trading using opposite BROWNS INVESTMENTS and CEYLINCO INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BROWNS INVESTMENTS 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.| BROWNS INVESTMENTS vs. Aitken Spence Hotel | BROWNS INVESTMENTS vs. Lanka Realty Investments | BROWNS INVESTMENTS vs. Keells Food Products | BROWNS INVESTMENTS vs. Ceylon Guardian Investment |
| CEYLINCO INSURANCE vs. Ceylon Cold Stores | CEYLINCO INSURANCE vs. HDFC Bank of | CEYLINCO INSURANCE vs. HATTON NATIONAL BANK | CEYLINCO INSURANCE vs. Sanasa Development Bank |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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