Correlation Between Ceylon Hospitals and Amana Bank
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By analyzing existing cross correlation between Ceylon Hospitals PLC and Amana Bank, you can compare the effects of market volatilities on Ceylon Hospitals and Amana Bank 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 Hospitals with a short position of Amana Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceylon Hospitals and Amana Bank.
Diversification Opportunities for Ceylon Hospitals and Amana Bank
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ceylon and Amana is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Ceylon Hospitals PLC and Amana Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amana Bank and Ceylon Hospitals 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 Hospitals PLC are associated (or correlated) with Amana Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amana Bank has no effect on the direction of Ceylon Hospitals i.e., Ceylon Hospitals and Amana Bank go up and down completely randomly.
Pair Corralation between Ceylon Hospitals and Amana Bank
Assuming the 90 days trading horizon Ceylon Hospitals is expected to generate 1.24 times less return on investment than Amana Bank. In addition to that, Ceylon Hospitals is 1.78 times more volatile than Amana Bank. It trades about 0.06 of its total potential returns per unit of risk. Amana Bank is currently generating about 0.13 per unit of volatility. If you would invest 2,230 in Amana Bank on August 24, 2024 and sell it today you would earn a total of 70.00 from holding Amana Bank or generate 3.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.0% |
| Values | Daily Returns |
Ceylon Hospitals PLC vs. Amana Bank
Performance |
| Timeline |
| Ceylon Hospitals PLC |
| Amana Bank |
Ceylon Hospitals and Amana Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceylon Hospitals and Amana Bank
The main advantage of trading using opposite Ceylon Hospitals and Amana Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceylon Hospitals position performs unexpectedly, Amana Bank 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 Amana Bank will offset losses from the drop in Amana Bank's long position.| Ceylon Hospitals vs. HNB Finance | Ceylon Hospitals vs. Prime Lands Residencies | Ceylon Hospitals vs. Jat Holdings PLC | Ceylon Hospitals vs. E M L |
| Amana Bank vs. HNB Finance | Amana Bank vs. Prime Lands Residencies | Amana Bank vs. Jat Holdings PLC | Amana Bank vs. E M L |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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