Correlation Between Ceylon Hotels and Palm Garden
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ceylon Hotels and Palm Garden Hotels, you can compare the effects of market volatilities on Ceylon Hotels and Palm Garden 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 Hotels with a short position of Palm Garden. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceylon Hotels and Palm Garden.
Diversification Opportunities for Ceylon Hotels and Palm Garden
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ceylon and Palm is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Ceylon Hotels and Palm Garden Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Palm Garden Hotels and Ceylon Hotels 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 Hotels are associated (or correlated) with Palm Garden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Palm Garden Hotels has no effect on the direction of Ceylon Hotels i.e., Ceylon Hotels and Palm Garden go up and down completely randomly.
Pair Corralation between Ceylon Hotels and Palm Garden
Assuming the 90 days trading horizon Ceylon Hotels is expected to generate 1.54 times more return on investment than Palm Garden. However, Ceylon Hotels is 1.54 times more volatile than Palm Garden Hotels. It trades about 0.27 of its potential returns per unit of risk. Palm Garden Hotels is currently generating about 0.27 per unit of risk. If you would invest 1,900 in Ceylon Hotels on September 1, 2024 and sell it today you would earn a total of 300.00 from holding Ceylon Hotels or generate 15.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.0% |
| Values | Daily Returns |
Ceylon Hotels vs. Palm Garden Hotels
Performance |
| Timeline |
| Ceylon Hotels |
| Palm Garden Hotels |
Ceylon Hotels and Palm Garden Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceylon Hotels and Palm Garden
The main advantage of trading using opposite Ceylon Hotels and Palm Garden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceylon Hotels position performs unexpectedly, Palm Garden 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 Palm Garden will offset losses from the drop in Palm Garden's long position.| Ceylon Hotels vs. Seylan Bank PLC | Ceylon Hotels vs. Union Chemicals Lanka | Ceylon Hotels vs. Citrus Leisure PLC | Ceylon Hotels vs. Sampath Bank PLC |
| Palm Garden vs. Tal Lanka Hotels | Palm Garden vs. Janashakthi Insurance | Palm Garden vs. Merchant Bank of | Palm Garden vs. Union Chemicals Lanka |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |