Correlation Between Ceylon Hospitals and CEYLINCO INSURANCE
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By analyzing existing cross correlation between Ceylon Hospitals PLC and CEYLINCO INSURANCE PLC, you can compare the effects of market volatilities on Ceylon Hospitals 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 Ceylon Hospitals with a short position of CEYLINCO INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceylon Hospitals and CEYLINCO INSURANCE.
Diversification Opportunities for Ceylon Hospitals and CEYLINCO INSURANCE
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ceylon and CEYLINCO is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Ceylon Hospitals 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 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 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 Ceylon Hospitals i.e., Ceylon Hospitals and CEYLINCO INSURANCE go up and down completely randomly.
Pair Corralation between Ceylon Hospitals and CEYLINCO INSURANCE
Assuming the 90 days trading horizon Ceylon Hospitals PLC is expected to generate 1.73 times more return on investment than CEYLINCO INSURANCE. However, Ceylon Hospitals is 1.73 times more volatile than CEYLINCO INSURANCE PLC. It trades about 0.06 of its potential returns per unit of risk. CEYLINCO INSURANCE PLC is currently generating about 0.05 per unit of risk. If you would invest 11,500 in Ceylon Hospitals PLC on August 24, 2024 and sell it today you would earn a total of 200.00 from holding Ceylon Hospitals PLC or generate 1.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.89% |
| Values | Daily Returns |
Ceylon Hospitals PLC vs. CEYLINCO INSURANCE PLC
Performance |
| Timeline |
| Ceylon Hospitals PLC |
| CEYLINCO INSURANCE PLC |
Ceylon Hospitals and CEYLINCO INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceylon Hospitals and CEYLINCO INSURANCE
The main advantage of trading using opposite Ceylon Hospitals and CEYLINCO INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceylon Hospitals 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.| Ceylon Hospitals vs. HNB Finance | Ceylon Hospitals vs. Prime Lands Residencies | Ceylon Hospitals vs. Jat Holdings PLC | Ceylon Hospitals vs. E M L |
| CEYLINCO INSURANCE vs. HNB Finance | CEYLINCO INSURANCE vs. Prime Lands Residencies | CEYLINCO INSURANCE vs. Jat Holdings PLC | CEYLINCO INSURANCE 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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