Correlation Between CEYLINCO INSURANCE and Dolphin Hotels
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By analyzing existing cross correlation between CEYLINCO INSURANCE PLC and Dolphin Hotels PLC, you can compare the effects of market volatilities on CEYLINCO INSURANCE and Dolphin Hotels 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 Dolphin Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEYLINCO INSURANCE and Dolphin Hotels.
Diversification Opportunities for CEYLINCO INSURANCE and Dolphin Hotels
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CEYLINCO and Dolphin is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding CEYLINCO INSURANCE PLC and Dolphin Hotels PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dolphin Hotels PLC 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 Dolphin Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dolphin Hotels PLC has no effect on the direction of CEYLINCO INSURANCE i.e., CEYLINCO INSURANCE and Dolphin Hotels go up and down completely randomly.
Pair Corralation between CEYLINCO INSURANCE and Dolphin Hotels
Assuming the 90 days trading horizon CEYLINCO INSURANCE is expected to generate 14.5 times less return on investment than Dolphin Hotels. But when comparing it to its historical volatility, CEYLINCO INSURANCE PLC is 2.26 times less risky than Dolphin Hotels. It trades about 0.01 of its potential returns per unit of risk. Dolphin Hotels PLC is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,070 in Dolphin Hotels PLC on August 27, 2024 and sell it today you would earn a total of 1,170 from holding Dolphin Hotels PLC or generate 38.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 91.37% |
| Values | Daily Returns |
CEYLINCO INSURANCE PLC vs. Dolphin Hotels PLC
Performance |
| Timeline |
| CEYLINCO INSURANCE PLC |
| Dolphin Hotels PLC |
CEYLINCO INSURANCE and Dolphin Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CEYLINCO INSURANCE and Dolphin Hotels
The main advantage of trading using opposite CEYLINCO INSURANCE and Dolphin Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEYLINCO INSURANCE position performs unexpectedly, Dolphin Hotels 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 Dolphin Hotels will offset losses from the drop in Dolphin Hotels' long position.| CEYLINCO INSURANCE vs. Sanasa Development Bank | CEYLINCO INSURANCE vs. Union Chemicals Lanka | CEYLINCO INSURANCE vs. Union Bank | CEYLINCO INSURANCE vs. Ceylon Guardian Investment |
| Dolphin Hotels vs. Amana Bank | Dolphin Hotels vs. BROWNS INVESTMENTS PLC | Dolphin Hotels vs. PEOPLES LEASING FINANCE | Dolphin Hotels vs. Pan Asia Banking |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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