Correlation Between Ceylinco Insurance and COMMERCIAL BANK
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By analyzing existing cross correlation between Ceylinco Insurance PLC and COMMERCIAL BANK OF, you can compare the effects of market volatilities on Ceylinco Insurance and COMMERCIAL 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 Ceylinco Insurance with a short position of COMMERCIAL BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceylinco Insurance and COMMERCIAL BANK.
Diversification Opportunities for Ceylinco Insurance and COMMERCIAL BANK
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ceylinco and COMMERCIAL is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Ceylinco Insurance PLC and COMMERCIAL BANK OF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMMERCIAL BANK and Ceylinco Insurance 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 Ceylinco Insurance PLC are associated (or correlated) with COMMERCIAL BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMMERCIAL BANK has no effect on the direction of Ceylinco Insurance i.e., Ceylinco Insurance and COMMERCIAL BANK go up and down completely randomly.
Pair Corralation between Ceylinco Insurance and COMMERCIAL BANK
Assuming the 90 days trading horizon Ceylinco Insurance PLC is expected to generate 1.39 times more return on investment than COMMERCIAL BANK. However, Ceylinco Insurance is 1.39 times more volatile than COMMERCIAL BANK OF. It trades about 0.29 of its potential returns per unit of risk. COMMERCIAL BANK OF is currently generating about 0.24 per unit of risk. If you would invest 236,400 in Ceylinco Insurance PLC on August 27, 2024 and sell it today you would earn a total of 13,600 from holding Ceylinco Insurance PLC or generate 5.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 66.67% |
| Values | Daily Returns |
Ceylinco Insurance PLC vs. COMMERCIAL BANK OF
Performance |
| Timeline |
| Ceylinco Insurance PLC |
| COMMERCIAL BANK |
Ceylinco Insurance and COMMERCIAL BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceylinco Insurance and COMMERCIAL BANK
The main advantage of trading using opposite Ceylinco Insurance and COMMERCIAL BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceylinco Insurance position performs unexpectedly, COMMERCIAL 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 COMMERCIAL BANK will offset losses from the drop in COMMERCIAL BANK's long position.| Ceylinco Insurance vs. Tal Lanka Hotels | Ceylinco Insurance vs. Tangerine Beach Hotels | Ceylinco Insurance vs. Ceylon Hospitals PLC | Ceylinco Insurance vs. Dolphin Hotels PLC |
| COMMERCIAL BANK vs. ACL Plastics PLC | COMMERCIAL BANK vs. Ceylon Hospitals PLC | COMMERCIAL BANK vs. Browns Beach Hotels | COMMERCIAL BANK vs. SERENDIB HOTELS 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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