Correlation Between CEYLON HOSPITALS and BROWNS INVESTMENTS
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By analyzing existing cross correlation between CEYLON HOSPITALS PLC and BROWNS INVESTMENTS PLC, you can compare the effects of market volatilities on CEYLON HOSPITALS and BROWNS INVESTMENTS 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 BROWNS INVESTMENTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEYLON HOSPITALS and BROWNS INVESTMENTS.
Diversification Opportunities for CEYLON HOSPITALS and BROWNS INVESTMENTS
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between CEYLON and BROWNS is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding CEYLON HOSPITALS PLC and BROWNS INVESTMENTS PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BROWNS INVESTMENTS 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 BROWNS INVESTMENTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BROWNS INVESTMENTS PLC has no effect on the direction of CEYLON HOSPITALS i.e., CEYLON HOSPITALS and BROWNS INVESTMENTS go up and down completely randomly.
Pair Corralation between CEYLON HOSPITALS and BROWNS INVESTMENTS
Assuming the 90 days trading horizon CEYLON HOSPITALS PLC is expected to under-perform the BROWNS INVESTMENTS. But the stock apears to be less risky and, when comparing its historical volatility, CEYLON HOSPITALS PLC is 6.55 times less risky than BROWNS INVESTMENTS. The stock trades about -0.25 of its potential returns per unit of risk. The BROWNS INVESTMENTS PLC is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 590.00 in BROWNS INVESTMENTS PLC on August 31, 2024 and sell it today you would earn a total of 0.00 from holding BROWNS INVESTMENTS PLC or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 60.0% |
| Values | Daily Returns |
CEYLON HOSPITALS PLC vs. BROWNS INVESTMENTS PLC
Performance |
| Timeline |
| CEYLON HOSPITALS PLC |
| BROWNS INVESTMENTS PLC |
CEYLON HOSPITALS and BROWNS INVESTMENTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CEYLON HOSPITALS and BROWNS INVESTMENTS
The main advantage of trading using opposite CEYLON HOSPITALS and BROWNS INVESTMENTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEYLON HOSPITALS position performs unexpectedly, BROWNS INVESTMENTS 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 BROWNS INVESTMENTS will offset losses from the drop in BROWNS INVESTMENTS'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 |
| BROWNS INVESTMENTS vs. Aitken Spence Hotel | BROWNS INVESTMENTS vs. Lanka Realty Investments | BROWNS INVESTMENTS vs. Keells Food Products | BROWNS INVESTMENTS 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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