Correlation Between CEYLINCO INSURANCE and EX PACK
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By analyzing existing cross correlation between CEYLINCO INSURANCE PLC and EX PACK RUGATED CARTONS, you can compare the effects of market volatilities on CEYLINCO INSURANCE and EX PACK 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 EX PACK. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEYLINCO INSURANCE and EX PACK.
Diversification Opportunities for CEYLINCO INSURANCE and EX PACK
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CEYLINCO and PACKN0000 is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding CEYLINCO INSURANCE PLC and EX PACK RUGATED CARTONS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EX PACK RUGATED 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 EX PACK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EX PACK RUGATED has no effect on the direction of CEYLINCO INSURANCE i.e., CEYLINCO INSURANCE and EX PACK go up and down completely randomly.
Pair Corralation between CEYLINCO INSURANCE and EX PACK
Assuming the 90 days trading horizon CEYLINCO INSURANCE PLC is expected to generate 1.26 times more return on investment than EX PACK. However, CEYLINCO INSURANCE is 1.26 times more volatile than EX PACK RUGATED CARTONS. It trades about 0.13 of its potential returns per unit of risk. EX PACK RUGATED CARTONS is currently generating about 0.11 per unit of risk. If you would invest 92,500 in CEYLINCO INSURANCE PLC on September 2, 2024 and sell it today you would earn a total of 11,325 from holding CEYLINCO INSURANCE PLC or generate 12.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 93.33% |
| Values | Daily Returns |
CEYLINCO INSURANCE PLC vs. EX PACK RUGATED CARTONS
Performance |
| Timeline |
| CEYLINCO INSURANCE PLC |
| EX PACK RUGATED |
CEYLINCO INSURANCE and EX PACK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CEYLINCO INSURANCE and EX PACK
The main advantage of trading using opposite CEYLINCO INSURANCE and EX PACK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEYLINCO INSURANCE position performs unexpectedly, EX PACK 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 EX PACK will offset losses from the drop in EX PACK's long position.| CEYLINCO INSURANCE vs. Prime Lands Residencies | CEYLINCO INSURANCE vs. VIDULLANKA PLC | CEYLINCO INSURANCE vs. EX PACK RUGATED CARTONS |
| EX PACK vs. COMMERCIAL BANK OF | EX PACK vs. HVA Foods PLC | EX PACK vs. CEYLINCO INSURANCE PLC | EX PACK vs. Lanka Realty Investments |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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