Correlation Between CEYLON HOSPITALS and Mahaweli Reach
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By analyzing existing cross correlation between CEYLON HOSPITALS PLC and Mahaweli Reach Hotel, you can compare the effects of market volatilities on CEYLON HOSPITALS and Mahaweli Reach 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 Mahaweli Reach. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEYLON HOSPITALS and Mahaweli Reach.
Diversification Opportunities for CEYLON HOSPITALS and Mahaweli Reach
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CEYLON and Mahaweli is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding CEYLON HOSPITALS PLC and Mahaweli Reach Hotel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mahaweli Reach Hotel 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 Mahaweli Reach. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mahaweli Reach Hotel has no effect on the direction of CEYLON HOSPITALS i.e., CEYLON HOSPITALS and Mahaweli Reach go up and down completely randomly.
Pair Corralation between CEYLON HOSPITALS and Mahaweli Reach
Assuming the 90 days trading horizon CEYLON HOSPITALS PLC is expected to under-perform the Mahaweli Reach. But the stock apears to be less risky and, when comparing its historical volatility, CEYLON HOSPITALS PLC is 3.32 times less risky than Mahaweli Reach. The stock trades about -0.34 of its potential returns per unit of risk. The Mahaweli Reach Hotel is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 1,410 in Mahaweli Reach Hotel on September 4, 2024 and sell it today you would earn a total of 400.00 from holding Mahaweli Reach Hotel or generate 28.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 60.0% |
| Values | Daily Returns |
CEYLON HOSPITALS PLC vs. Mahaweli Reach Hotel
Performance |
| Timeline |
| CEYLON HOSPITALS PLC |
| Mahaweli Reach Hotel |
CEYLON HOSPITALS and Mahaweli Reach Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CEYLON HOSPITALS and Mahaweli Reach
The main advantage of trading using opposite CEYLON HOSPITALS and Mahaweli Reach positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEYLON HOSPITALS position performs unexpectedly, Mahaweli Reach 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 Mahaweli Reach will offset losses from the drop in Mahaweli Reach's long position.| CEYLON HOSPITALS vs. Peoples Insurance PLC | CEYLON HOSPITALS vs. Janashakthi Insurance | CEYLON HOSPITALS vs. Ceylon Guardian Investment | CEYLON HOSPITALS vs. Pegasus Hotels of |
| Mahaweli Reach vs. Lanka Credit and | Mahaweli Reach vs. VIDULLANKA PLC | Mahaweli Reach vs. Carson Cumberbatch PLC | Mahaweli Reach vs. Nations Trust Bank |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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