Correlation Between Carson Cumberbatch and CEYLINCO INSURANCE
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By analyzing existing cross correlation between Carson Cumberbatch PLC and CEYLINCO INSURANCE PLC, you can compare the effects of market volatilities on Carson Cumberbatch 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 Carson Cumberbatch with a short position of CEYLINCO INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carson Cumberbatch and CEYLINCO INSURANCE.
Diversification Opportunities for Carson Cumberbatch and CEYLINCO INSURANCE
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Carson and CEYLINCO is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Carson Cumberbatch 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 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 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 Carson Cumberbatch i.e., Carson Cumberbatch and CEYLINCO INSURANCE go up and down completely randomly.
Pair Corralation between Carson Cumberbatch and CEYLINCO INSURANCE
Assuming the 90 days trading horizon Carson Cumberbatch PLC is expected to generate 0.67 times more return on investment than CEYLINCO INSURANCE. However, Carson Cumberbatch PLC is 1.49 times less risky than CEYLINCO INSURANCE. It trades about 0.25 of its potential returns per unit of risk. CEYLINCO INSURANCE PLC is currently generating about 0.14 per unit of risk. If you would invest 29,475 in Carson Cumberbatch PLC on August 28, 2024 and sell it today you would earn a total of 3,525 from holding Carson Cumberbatch PLC or generate 11.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.14% |
| Values | Daily Returns |
Carson Cumberbatch PLC vs. CEYLINCO INSURANCE PLC
Performance |
| Timeline |
| Carson Cumberbatch PLC |
| CEYLINCO INSURANCE PLC |
Carson Cumberbatch and CEYLINCO INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carson Cumberbatch and CEYLINCO INSURANCE
The main advantage of trading using opposite Carson Cumberbatch and CEYLINCO INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carson Cumberbatch 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.| Carson Cumberbatch vs. Softlogic Life Insurance | Carson Cumberbatch vs. Singhe Hospitals | Carson Cumberbatch vs. ACL Plastics PLC | Carson Cumberbatch vs. Ceylon Hospitals PLC |
| CEYLINCO INSURANCE vs. Sanasa Development Bank | CEYLINCO INSURANCE vs. Union Chemicals Lanka | CEYLINCO INSURANCE vs. Union Bank | CEYLINCO INSURANCE vs. Ceylon Guardian Investment |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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