Correlation Between Carson Cumberbatch and Ceylon Hospitals
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By analyzing existing cross correlation between Carson Cumberbatch PLC and Ceylon Hospitals PLC, you can compare the effects of market volatilities on Carson Cumberbatch 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 Carson Cumberbatch with a short position of Ceylon Hospitals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carson Cumberbatch and Ceylon Hospitals.
Diversification Opportunities for Carson Cumberbatch and Ceylon Hospitals
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Carson and Ceylon is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Carson Cumberbatch 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 Carson Cumberbatch 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 Carson Cumberbatch 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 Carson Cumberbatch i.e., Carson Cumberbatch and Ceylon Hospitals go up and down completely randomly.
Pair Corralation between Carson Cumberbatch and Ceylon Hospitals
Assuming the 90 days trading horizon Carson Cumberbatch PLC is expected to generate 0.87 times more return on investment than Ceylon Hospitals. However, Carson Cumberbatch PLC is 1.15 times less risky than Ceylon Hospitals. It trades about 0.06 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 27,475 in Carson Cumberbatch PLC on December 4, 2024 and sell it today you would earn a total of 15,250 from holding Carson Cumberbatch PLC or generate 55.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 85.06% |
| Values | Daily Returns |
Carson Cumberbatch PLC vs. Ceylon Hospitals PLC
Performance |
| Timeline |
| Carson Cumberbatch PLC |
| Ceylon Hospitals PLC |
Carson Cumberbatch and Ceylon Hospitals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carson Cumberbatch and Ceylon Hospitals
The main advantage of trading using opposite Carson Cumberbatch and Ceylon Hospitals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carson Cumberbatch 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.| Carson Cumberbatch vs. Tal Lanka Hotels | Carson Cumberbatch vs. HVA Foods PLC | Carson Cumberbatch vs. Sigiriya Village Hotels | Carson Cumberbatch vs. Galadari Hotels Lanka |
| Ceylon Hospitals vs. Ceylon Hotels | Ceylon Hospitals vs. Aitken Spence Hotel | Ceylon Hospitals vs. SERENDIB HOTELS PLC | Ceylon Hospitals vs. Convenience Foods 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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