Correlation Between Ceylon Hospitals and Singhe Hospitals
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By analyzing existing cross correlation between Ceylon Hospitals PLC and Singhe Hospitals, you can compare the effects of market volatilities on Ceylon Hospitals and Singhe Hospitals 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 Singhe Hospitals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceylon Hospitals and Singhe Hospitals.
Diversification Opportunities for Ceylon Hospitals and Singhe Hospitals
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ceylon and Singhe is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Ceylon Hospitals PLC and Singhe Hospitals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singhe Hospitals 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 Singhe Hospitals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singhe Hospitals has no effect on the direction of Ceylon Hospitals i.e., Ceylon Hospitals and Singhe Hospitals go up and down completely randomly.
Pair Corralation between Ceylon Hospitals and Singhe Hospitals
Assuming the 90 days trading horizon Ceylon Hospitals PLC is expected to under-perform the Singhe Hospitals. But the stock apears to be less risky and, when comparing its historical volatility, Ceylon Hospitals PLC is 1.27 times less risky than Singhe Hospitals. The stock trades about -0.01 of its potential returns per unit of risk. The Singhe Hospitals is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 250.00 in Singhe Hospitals on August 31, 2024 and sell it today you would lose (10.00) from holding Singhe Hospitals or give up 4.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 76.4% |
| Values | Daily Returns |
Ceylon Hospitals PLC vs. Singhe Hospitals
Performance |
| Timeline |
| Ceylon Hospitals PLC |
| Singhe Hospitals |
Ceylon Hospitals and Singhe Hospitals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceylon Hospitals and Singhe Hospitals
The main advantage of trading using opposite Ceylon Hospitals and Singhe Hospitals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceylon Hospitals position performs unexpectedly, Singhe Hospitals 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 Singhe Hospitals will offset losses from the drop in Singhe Hospitals' 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 |
| Singhe Hospitals vs. Asiri Surgical Hospital | Singhe Hospitals vs. CEYLON HOSPITALS PLC | Singhe Hospitals vs. Ceylon Hospitals PLC | Singhe Hospitals vs. Chemanex 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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