Correlation Between Ceylon Beverage and Softlogic Life
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By analyzing existing cross correlation between Ceylon Beverage Holdings and Softlogic Life Insurance, you can compare the effects of market volatilities on Ceylon Beverage and Softlogic Life 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 Ceylon Beverage with a short position of Softlogic Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceylon Beverage and Softlogic Life.
Diversification Opportunities for Ceylon Beverage and Softlogic Life
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ceylon and Softlogic is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Ceylon Beverage Holdings and Softlogic Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Softlogic Life Insurance and Ceylon Beverage 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 Ceylon Beverage Holdings are associated (or correlated) with Softlogic Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Softlogic Life Insurance has no effect on the direction of Ceylon Beverage i.e., Ceylon Beverage and Softlogic Life go up and down completely randomly.
Pair Corralation between Ceylon Beverage and Softlogic Life
Assuming the 90 days trading horizon Ceylon Beverage Holdings is expected to generate 1.19 times more return on investment than Softlogic Life. However, Ceylon Beverage is 1.19 times more volatile than Softlogic Life Insurance. It trades about 0.13 of its potential returns per unit of risk. Softlogic Life Insurance is currently generating about 0.03 per unit of risk. If you would invest 90,000 in Ceylon Beverage Holdings on September 3, 2024 and sell it today you would earn a total of 130,025 from holding Ceylon Beverage Holdings or generate 144.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 47.05% |
| Values | Daily Returns |
Ceylon Beverage Holdings vs. Softlogic Life Insurance
Performance |
| Timeline |
| Ceylon Beverage Holdings |
| Softlogic Life Insurance |
Ceylon Beverage and Softlogic Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceylon Beverage and Softlogic Life
The main advantage of trading using opposite Ceylon Beverage and Softlogic Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceylon Beverage position performs unexpectedly, Softlogic Life 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 Softlogic Life will offset losses from the drop in Softlogic Life's long position.| Ceylon Beverage vs. Singhe Hospitals | Ceylon Beverage vs. Pegasus Hotels of | Ceylon Beverage vs. Eden Hotel Lanka | Ceylon Beverage vs. Lighthouse Hotel PLC |
| Softlogic Life vs. Lanka Credit and | Softlogic Life vs. VIDULLANKA PLC | Softlogic Life vs. Carson Cumberbatch PLC | Softlogic Life 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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