Correlation Between Ceylon Hotels and Singhe Hospitals
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ceylon Hotels and Singhe Hospitals, you can compare the effects of market volatilities on Ceylon Hotels and Singhe Hospitals 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 Singhe Hospitals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceylon Hotels and Singhe Hospitals.
Diversification Opportunities for Ceylon Hotels and Singhe Hospitals
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ceylon and Singhe is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Ceylon Hotels and Singhe Hospitals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singhe Hospitals 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 Singhe Hospitals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singhe Hospitals has no effect on the direction of Ceylon Hotels i.e., Ceylon Hotels and Singhe Hospitals go up and down completely randomly.
Pair Corralation between Ceylon Hotels and Singhe Hospitals
Assuming the 90 days trading horizon Ceylon Hotels is expected to generate 0.73 times more return on investment than Singhe Hospitals. However, Ceylon Hotels is 1.37 times less risky than Singhe Hospitals. It trades about 0.03 of its potential returns per unit of risk. Singhe Hospitals is currently generating about 0.01 per unit of risk. If you would invest 1,790 in Ceylon Hotels on August 31, 2024 and sell it today you would earn a total of 320.00 from holding Ceylon Hotels or generate 17.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.31% |
| Values | Daily Returns |
Ceylon Hotels vs. Singhe Hospitals
Performance |
| Timeline |
| Ceylon Hotels |
| Singhe Hospitals |
Ceylon Hotels and Singhe Hospitals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceylon Hotels and Singhe Hospitals
The main advantage of trading using opposite Ceylon Hotels and Singhe Hospitals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceylon Hotels position performs unexpectedly, Singhe Hospitals 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 Singhe Hospitals will offset losses from the drop in Singhe Hospitals' long position.| Ceylon Hotels vs. HNB Finance | Ceylon Hotels vs. Prime Lands Residencies | Ceylon Hotels vs. Jat Holdings PLC | Ceylon Hotels vs. E M L |
| Singhe Hospitals vs. Asiri Surgical Hospital | Singhe Hospitals vs. CEYLON HOSPITALS PLC | Singhe Hospitals vs. Ceylon Hospitals PLC | Singhe Hospitals vs. Chemanex 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |