Correlation Between Ceylon Hospitals and Peoples Insurance
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ceylon Hospitals PLC and Peoples Insurance PLC, you can compare the effects of market volatilities on Ceylon Hospitals and Peoples 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 Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceylon Hospitals and Peoples Insurance.
Diversification Opportunities for Ceylon Hospitals and Peoples Insurance
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ceylon and Peoples is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Ceylon Hospitals PLC and Peoples Insurance PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples 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 Peoples Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peoples Insurance PLC has no effect on the direction of Ceylon Hospitals i.e., Ceylon Hospitals and Peoples Insurance go up and down completely randomly.
Pair Corralation between Ceylon Hospitals and Peoples Insurance
Assuming the 90 days trading horizon Ceylon Hospitals PLC is expected to generate 1.65 times more return on investment than Peoples Insurance. However, Ceylon Hospitals is 1.65 times more volatile than Peoples Insurance PLC. It trades about -0.03 of its potential returns per unit of risk. Peoples Insurance PLC is currently generating about -0.21 per unit of risk. If you would invest 11,600 in Ceylon Hospitals PLC on August 31, 2024 and sell it today you would lose (175.00) from holding Ceylon Hospitals PLC or give up 1.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.0% |
| Values | Daily Returns |
Ceylon Hospitals PLC vs. Peoples Insurance PLC
Performance |
| Timeline |
| Ceylon Hospitals PLC |
| Peoples Insurance PLC |
Ceylon Hospitals and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceylon Hospitals and Peoples Insurance
The main advantage of trading using opposite Ceylon Hospitals and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceylon Hospitals position performs unexpectedly, Peoples 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 Peoples Insurance will offset losses from the drop in Peoples 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 |
| Peoples Insurance vs. HDFC Bank of | Peoples Insurance vs. Nations Trust Bank | Peoples Insurance vs. RENUKA FOODS PLC | Peoples Insurance vs. Carson Cumberbatch PLC |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |