Correlation Between Ceylinco Insurance and Pan Asia
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ceylinco Insurance PLC and Pan Asia Banking, you can compare the effects of market volatilities on Ceylinco Insurance and Pan Asia 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 Pan Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceylinco Insurance and Pan Asia.
Diversification Opportunities for Ceylinco Insurance and Pan Asia
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ceylinco and Pan is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Ceylinco Insurance PLC and Pan Asia Banking in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pan Asia Banking 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 Pan Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pan Asia Banking has no effect on the direction of Ceylinco Insurance i.e., Ceylinco Insurance and Pan Asia go up and down completely randomly.
Pair Corralation between Ceylinco Insurance and Pan Asia
Assuming the 90 days trading horizon Ceylinco Insurance PLC is expected to generate 0.88 times more return on investment than Pan Asia. However, Ceylinco Insurance PLC is 1.14 times less risky than Pan Asia. It trades about 0.35 of its potential returns per unit of risk. Pan Asia Banking is currently generating about 0.25 per unit of risk. If you would invest 236,400 in Ceylinco Insurance PLC on August 31, 2024 and sell it today you would earn a total of 18,375 from holding Ceylinco Insurance PLC or generate 7.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 70.0% |
| Values | Daily Returns |
Ceylinco Insurance PLC vs. Pan Asia Banking
Performance |
| Timeline |
| Ceylinco Insurance PLC |
| Pan Asia Banking |
Ceylinco Insurance and Pan Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceylinco Insurance and Pan Asia
The main advantage of trading using opposite Ceylinco Insurance and Pan Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceylinco Insurance position performs unexpectedly, Pan Asia 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 Pan Asia will offset losses from the drop in Pan Asia's long position.| Ceylinco Insurance vs. HNB Finance | Ceylinco Insurance vs. Prime Lands Residencies | Ceylinco Insurance vs. Jat Holdings PLC | Ceylinco Insurance vs. E M L |
| Pan Asia vs. HATTON NATIONAL BANK | Pan Asia vs. CEYLINCO INSURANCE PLC | Pan Asia vs. Seylan Bank PLC | Pan Asia vs. Commercial Credit and |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |