Correlation Between Ceylon Hospitals and Ceylon Guardian
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By analyzing existing cross correlation between Ceylon Hospitals PLC and Ceylon Guardian Investment, you can compare the effects of market volatilities on Ceylon Hospitals and Ceylon Guardian 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 Ceylon Guardian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceylon Hospitals and Ceylon Guardian.
Diversification Opportunities for Ceylon Hospitals and Ceylon Guardian
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ceylon and Ceylon is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Ceylon Hospitals PLC and Ceylon Guardian Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ceylon Guardian Inve 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 Ceylon Guardian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ceylon Guardian Inve has no effect on the direction of Ceylon Hospitals i.e., Ceylon Hospitals and Ceylon Guardian go up and down completely randomly.
Pair Corralation between Ceylon Hospitals and Ceylon Guardian
Assuming the 90 days trading horizon Ceylon Hospitals PLC is expected to under-perform the Ceylon Guardian. But the stock apears to be less risky and, when comparing its historical volatility, Ceylon Hospitals PLC is 1.1 times less risky than Ceylon Guardian. The stock trades about -0.01 of its potential returns per unit of risk. The Ceylon Guardian Investment is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 6,300 in Ceylon Guardian Investment on August 31, 2024 and sell it today you would earn a total of 4,200 from holding Ceylon Guardian Investment or generate 66.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 76.85% |
| Values | Daily Returns |
Ceylon Hospitals PLC vs. Ceylon Guardian Investment
Performance |
| Timeline |
| Ceylon Hospitals PLC |
| Ceylon Guardian Inve |
Ceylon Hospitals and Ceylon Guardian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceylon Hospitals and Ceylon Guardian
The main advantage of trading using opposite Ceylon Hospitals and Ceylon Guardian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceylon Hospitals position performs unexpectedly, Ceylon Guardian 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 Guardian will offset losses from the drop in Ceylon Guardian'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 |
| Ceylon Guardian vs. HNB Finance | Ceylon Guardian vs. Prime Lands Residencies | Ceylon Guardian vs. Jat Holdings PLC | Ceylon Guardian 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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