Correlation Between Ceylon Hospitals and Serendib Hotels
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By analyzing existing cross correlation between Ceylon Hospitals PLC and Serendib Hotels PLC, you can compare the effects of market volatilities on Ceylon Hospitals and Serendib Hotels 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 Serendib Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceylon Hospitals and Serendib Hotels.
Diversification Opportunities for Ceylon Hospitals and Serendib Hotels
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ceylon and Serendib is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Ceylon Hospitals PLC and Serendib Hotels PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Serendib Hotels 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 Serendib Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Serendib Hotels PLC has no effect on the direction of Ceylon Hospitals i.e., Ceylon Hospitals and Serendib Hotels go up and down completely randomly.
Pair Corralation between Ceylon Hospitals and Serendib Hotels
Assuming the 90 days trading horizon Ceylon Hospitals PLC is expected to under-perform the Serendib Hotels. In addition to that, Ceylon Hospitals is 1.07 times more volatile than Serendib Hotels PLC. It trades about -0.03 of its total potential returns per unit of risk. Serendib Hotels PLC is currently generating about 0.29 per unit of volatility. If you would invest 1,570 in Serendib Hotels PLC on August 28, 2024 and sell it today you would earn a total of 180.00 from holding Serendib Hotels PLC or generate 11.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 84.21% |
| Values | Daily Returns |
Ceylon Hospitals PLC vs. Serendib Hotels PLC
Performance |
| Timeline |
| Ceylon Hospitals PLC |
| Serendib Hotels PLC |
Ceylon Hospitals and Serendib Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceylon Hospitals and Serendib Hotels
The main advantage of trading using opposite Ceylon Hospitals and Serendib Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceylon Hospitals position performs unexpectedly, Serendib Hotels 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 Serendib Hotels will offset losses from the drop in Serendib Hotels' long position.| Ceylon Hospitals vs. CEYLINCO INSURANCE PLC | Ceylon Hospitals vs. Nuwara Eliya Hotels | Ceylon Hospitals vs. Union Chemicals Lanka | Ceylon Hospitals vs. Pegasus Hotels of |
| Serendib Hotels vs. Sri Lanka Telecom | Serendib Hotels vs. Peoples Insurance PLC | Serendib Hotels vs. Lanka Realty Investments | Serendib Hotels vs. Ceylon Guardian Investment |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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