Correlation Between CEYLON HOSPITALS and Ceylon Hotels
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By analyzing existing cross correlation between CEYLON HOSPITALS PLC and Ceylon Hotels, you can compare the effects of market volatilities on CEYLON HOSPITALS and Ceylon 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 Ceylon Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEYLON HOSPITALS and Ceylon Hotels.
Diversification Opportunities for CEYLON HOSPITALS and Ceylon Hotels
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CEYLON and Ceylon is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding CEYLON HOSPITALS PLC and Ceylon Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ceylon Hotels 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 Ceylon Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ceylon Hotels has no effect on the direction of CEYLON HOSPITALS i.e., CEYLON HOSPITALS and Ceylon Hotels go up and down completely randomly.
Pair Corralation between CEYLON HOSPITALS and Ceylon Hotels
Assuming the 90 days trading horizon CEYLON HOSPITALS PLC is expected to under-perform the Ceylon Hotels. In addition to that, CEYLON HOSPITALS is 1.29 times more volatile than Ceylon Hotels. It trades about 0.0 of its total potential returns per unit of risk. Ceylon Hotels is currently generating about 0.03 per unit of volatility. If you would invest 1,630 in Ceylon Hotels on August 27, 2024 and sell it today you would earn a total of 390.00 from holding Ceylon Hotels or generate 23.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 59.67% |
| Values | Daily Returns |
CEYLON HOSPITALS PLC vs. Ceylon Hotels
Performance |
| Timeline |
| CEYLON HOSPITALS PLC |
| Ceylon Hotels |
CEYLON HOSPITALS and Ceylon Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CEYLON HOSPITALS and Ceylon Hotels
The main advantage of trading using opposite CEYLON HOSPITALS and Ceylon Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEYLON HOSPITALS position performs unexpectedly, Ceylon 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 Ceylon Hotels will offset losses from the drop in Ceylon Hotels' long position.| CEYLON HOSPITALS vs. Palm Garden Hotels | CEYLON HOSPITALS vs. Kandy Hotels | CEYLON HOSPITALS vs. Lighthouse Hotel PLC | CEYLON HOSPITALS vs. Arpico Insurance |
| Ceylon Hotels vs. Nuwara Eliya Hotels | Ceylon Hotels vs. Tal Lanka Hotels | Ceylon Hotels vs. Renuka Agri Foods | Ceylon Hotels vs. Aitken Spence Hotel |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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