Correlation Between Ceylon Cold and Softlogic Life
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By analyzing existing cross correlation between Ceylon Cold Stores and Softlogic Life Insurance, you can compare the effects of market volatilities on Ceylon Cold 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 Cold with a short position of Softlogic Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceylon Cold and Softlogic Life.
Diversification Opportunities for Ceylon Cold and Softlogic Life
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ceylon and Softlogic is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Ceylon Cold Stores 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 Cold 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 Cold Stores 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 Cold i.e., Ceylon Cold and Softlogic Life go up and down completely randomly.
Pair Corralation between Ceylon Cold and Softlogic Life
Assuming the 90 days trading horizon Ceylon Cold Stores is expected to generate 0.61 times more return on investment than Softlogic Life. However, Ceylon Cold Stores is 1.64 times less risky than Softlogic Life. It trades about 0.22 of its potential returns per unit of risk. Softlogic Life Insurance is currently generating about 0.01 per unit of risk. If you would invest 6,280 in Ceylon Cold Stores on August 27, 2024 and sell it today you would earn a total of 220.00 from holding Ceylon Cold Stores or generate 3.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ceylon Cold Stores vs. Softlogic Life Insurance
Performance |
| Timeline |
| Ceylon Cold Stores |
| Softlogic Life Insurance |
Ceylon Cold and Softlogic Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceylon Cold and Softlogic Life
The main advantage of trading using opposite Ceylon Cold and Softlogic Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceylon Cold 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 Cold vs. Amana Bank | Ceylon Cold vs. Ceylinco Insurance PLC | Ceylon Cold vs. Seylan Bank PLC | Ceylon Cold vs. Peoples Insurance PLC |
| Softlogic Life vs. COMMERCIAL BANK OF | Softlogic Life vs. Amaya Leisure PLC | Softlogic Life vs. Ceylinco Insurance PLC | Softlogic Life vs. Janashakthi 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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