Correlation Between CEYLON HOSPITALS and Hatton National
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By analyzing existing cross correlation between CEYLON HOSPITALS PLC and Hatton National Bank, you can compare the effects of market volatilities on CEYLON HOSPITALS and Hatton National 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 Hatton National. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEYLON HOSPITALS and Hatton National.
Diversification Opportunities for CEYLON HOSPITALS and Hatton National
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between CEYLON and Hatton is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding CEYLON HOSPITALS PLC and Hatton National Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hatton National Bank 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 Hatton National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hatton National Bank has no effect on the direction of CEYLON HOSPITALS i.e., CEYLON HOSPITALS and Hatton National go up and down completely randomly.
Pair Corralation between CEYLON HOSPITALS and Hatton National
Assuming the 90 days trading horizon CEYLON HOSPITALS is expected to generate 1.16 times less return on investment than Hatton National. But when comparing it to its historical volatility, CEYLON HOSPITALS PLC is 1.2 times less risky than Hatton National. It trades about 0.23 of its potential returns per unit of risk. Hatton National Bank is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 21,575 in Hatton National Bank on August 24, 2024 and sell it today you would earn a total of 1,425 from holding Hatton National Bank or generate 6.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 70.0% |
| Values | Daily Returns |
CEYLON HOSPITALS PLC vs. Hatton National Bank
Performance |
| Timeline |
| CEYLON HOSPITALS PLC |
| Hatton National Bank |
CEYLON HOSPITALS and Hatton National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CEYLON HOSPITALS and Hatton National
The main advantage of trading using opposite CEYLON HOSPITALS and Hatton National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEYLON HOSPITALS position performs unexpectedly, Hatton National 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 Hatton National will offset losses from the drop in Hatton National'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 |
| Hatton National vs. Janashakthi Insurance | Hatton National vs. Carson Cumberbatch PLC | Hatton National vs. Sri Lanka Telecom | Hatton National vs. BROWNS INVESTMENTS 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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