Correlation Between Central Industries and Ceylon Guardian
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By analyzing existing cross correlation between Central Industries PLC and Ceylon Guardian Investment, you can compare the effects of market volatilities on Central Industries and Ceylon Guardian 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 Central Industries with a short position of Ceylon Guardian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Central Industries and Ceylon Guardian.
Diversification Opportunities for Central Industries and Ceylon Guardian
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Central and Ceylon is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Central Industries PLC and Ceylon Guardian Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ceylon Guardian Inve and Central Industries 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 Central Industries PLC are associated (or correlated) with Ceylon Guardian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ceylon Guardian Inve has no effect on the direction of Central Industries i.e., Central Industries and Ceylon Guardian go up and down completely randomly.
Pair Corralation between Central Industries and Ceylon Guardian
Assuming the 90 days trading horizon Central Industries PLC is expected to generate 0.93 times more return on investment than Ceylon Guardian. However, Central Industries PLC is 1.07 times less risky than Ceylon Guardian. It trades about 0.06 of its potential returns per unit of risk. Ceylon Guardian Investment is currently generating about 0.05 per unit of risk. If you would invest 9,120 in Central Industries PLC on September 4, 2024 and sell it today you would earn a total of 2,480 from holding Central Industries PLC or generate 27.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 93.53% |
| Values | Daily Returns |
Central Industries PLC vs. Ceylon Guardian Investment
Performance |
| Timeline |
| Central Industries PLC |
| Ceylon Guardian Inve |
Central Industries and Ceylon Guardian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Central Industries and Ceylon Guardian
The main advantage of trading using opposite Central Industries and Ceylon Guardian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Central Industries position performs unexpectedly, Ceylon Guardian 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 Ceylon Guardian will offset losses from the drop in Ceylon Guardian's long position.| Central Industries vs. Palm Garden Hotels | Central Industries vs. HVA Foods PLC | Central Industries vs. Kandy Hotels | Central Industries vs. Mahaweli Reach Hotel |
| Ceylon Guardian vs. Carson Cumberbatch PLC | Ceylon Guardian vs. Nations Trust Bank | Ceylon Guardian vs. Distilleries Company of |
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.
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