Correlation Between CEYLINCO INSURANCE and Mahaweli Reach
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By analyzing existing cross correlation between CEYLINCO INSURANCE PLC and Mahaweli Reach Hotel, you can compare the effects of market volatilities on CEYLINCO INSURANCE and Mahaweli Reach 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 Mahaweli Reach. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEYLINCO INSURANCE and Mahaweli Reach.
Diversification Opportunities for CEYLINCO INSURANCE and Mahaweli Reach
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CEYLINCO and Mahaweli is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding CEYLINCO INSURANCE PLC and Mahaweli Reach Hotel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mahaweli Reach Hotel 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 Mahaweli Reach. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mahaweli Reach Hotel has no effect on the direction of CEYLINCO INSURANCE i.e., CEYLINCO INSURANCE and Mahaweli Reach go up and down completely randomly.
Pair Corralation between CEYLINCO INSURANCE and Mahaweli Reach
Assuming the 90 days trading horizon CEYLINCO INSURANCE PLC is expected to under-perform the Mahaweli Reach. But the stock apears to be less risky and, when comparing its historical volatility, CEYLINCO INSURANCE PLC is 6.59 times less risky than Mahaweli Reach. The stock trades about -0.09 of its potential returns per unit of risk. The Mahaweli Reach Hotel is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 1,430 in Mahaweli Reach Hotel on August 30, 2024 and sell it today you would earn a total of 290.00 from holding Mahaweli Reach Hotel or generate 20.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
CEYLINCO INSURANCE PLC vs. Mahaweli Reach Hotel
Performance |
| Timeline |
| CEYLINCO INSURANCE PLC |
| Mahaweli Reach Hotel |
CEYLINCO INSURANCE and Mahaweli Reach Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CEYLINCO INSURANCE and Mahaweli Reach
The main advantage of trading using opposite CEYLINCO INSURANCE and Mahaweli Reach positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEYLINCO INSURANCE position performs unexpectedly, Mahaweli Reach 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 Mahaweli Reach will offset losses from the drop in Mahaweli Reach's long position.| CEYLINCO INSURANCE vs. EX PACK RUGATED CARTONS | CEYLINCO INSURANCE vs. PANASIAN POWER PLC | CEYLINCO INSURANCE vs. Distilleries Company of | CEYLINCO INSURANCE vs. Palm Garden Hotels |
| Mahaweli Reach vs. Arpico Insurance | Mahaweli Reach vs. Pan Asia Banking | Mahaweli Reach vs. Hatton National Bank | Mahaweli Reach vs. Sampath Bank 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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