Correlation Between Ceylon Hospitals and Dolphin Hotels
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By analyzing existing cross correlation between Ceylon Hospitals PLC and Dolphin Hotels PLC, you can compare the effects of market volatilities on Ceylon Hospitals and Dolphin 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 Dolphin Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceylon Hospitals and Dolphin Hotels.
Diversification Opportunities for Ceylon Hospitals and Dolphin Hotels
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ceylon and Dolphin is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Ceylon Hospitals PLC and Dolphin Hotels PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dolphin 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 Dolphin Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dolphin Hotels PLC has no effect on the direction of Ceylon Hospitals i.e., Ceylon Hospitals and Dolphin Hotels go up and down completely randomly.
Pair Corralation between Ceylon Hospitals and Dolphin Hotels
Assuming the 90 days trading horizon Ceylon Hospitals PLC is expected to generate 1.22 times more return on investment than Dolphin Hotels. However, Ceylon Hospitals is 1.22 times more volatile than Dolphin Hotels PLC. It trades about 0.07 of its potential returns per unit of risk. Dolphin Hotels PLC is currently generating about -0.06 per unit of risk. If you would invest 12,300 in Ceylon Hospitals PLC on November 3, 2024 and sell it today you would earn a total of 350.00 from holding Ceylon Hospitals PLC or generate 2.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ceylon Hospitals PLC vs. Dolphin Hotels PLC
Performance |
| Timeline |
| Ceylon Hospitals PLC |
| Dolphin Hotels PLC |
Ceylon Hospitals and Dolphin Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceylon Hospitals and Dolphin Hotels
The main advantage of trading using opposite Ceylon Hospitals and Dolphin Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceylon Hospitals position performs unexpectedly, Dolphin 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 Dolphin Hotels will offset losses from the drop in Dolphin Hotels' long position.| Ceylon Hospitals vs. Distilleries Company of | Ceylon Hospitals vs. Softlogic Life Insurance | Ceylon Hospitals vs. Merchant Bank of | Ceylon Hospitals vs. Ceylon Cold Stores |
| Dolphin Hotels vs. HNB Finance | Dolphin Hotels vs. Prime Lands Residencies | Dolphin Hotels vs. Jat Holdings PLC | Dolphin Hotels 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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