Correlation Between CEYLON HOSPITALS and SEYLAN BANK
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By analyzing existing cross correlation between CEYLON HOSPITALS PLC and SEYLAN BANK PLC, you can compare the effects of market volatilities on CEYLON HOSPITALS and SEYLAN BANK 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 SEYLAN BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEYLON HOSPITALS and SEYLAN BANK.
Diversification Opportunities for CEYLON HOSPITALS and SEYLAN BANK
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CEYLON and SEYLAN is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding CEYLON HOSPITALS PLC and SEYLAN BANK PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEYLAN BANK 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 SEYLAN BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEYLAN BANK PLC has no effect on the direction of CEYLON HOSPITALS i.e., CEYLON HOSPITALS and SEYLAN BANK go up and down completely randomly.
Pair Corralation between CEYLON HOSPITALS and SEYLAN BANK
Assuming the 90 days trading horizon CEYLON HOSPITALS PLC is expected to under-perform the SEYLAN BANK. In addition to that, CEYLON HOSPITALS is 1.11 times more volatile than SEYLAN BANK PLC. It trades about 0.0 of its total potential returns per unit of risk. SEYLAN BANK PLC is currently generating about 0.07 per unit of volatility. If you would invest 2,000 in SEYLAN BANK PLC on August 27, 2024 and sell it today you would earn a total of 2,110 from holding SEYLAN BANK PLC or generate 105.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 59.4% |
| Values | Daily Returns |
CEYLON HOSPITALS PLC vs. SEYLAN BANK PLC
Performance |
| Timeline |
| CEYLON HOSPITALS PLC |
| SEYLAN BANK PLC |
CEYLON HOSPITALS and SEYLAN BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CEYLON HOSPITALS and SEYLAN BANK
The main advantage of trading using opposite CEYLON HOSPITALS and SEYLAN BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEYLON HOSPITALS position performs unexpectedly, SEYLAN BANK 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 SEYLAN BANK will offset losses from the drop in SEYLAN BANK's long position.| CEYLON HOSPITALS vs. Palm Garden Hotels | CEYLON HOSPITALS vs. Kandy Hotels | CEYLON HOSPITALS vs. Lighthouse Hotel PLC | CEYLON HOSPITALS vs. Arpico Insurance |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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