Correlation Between Commercial Credit and Ceylinco Insurance
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By analyzing existing cross correlation between Commercial Credit and and Ceylinco Insurance PLC, you can compare the effects of market volatilities on Commercial Credit and Ceylinco Insurance 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 Commercial Credit with a short position of Ceylinco Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Commercial Credit and Ceylinco Insurance.
Diversification Opportunities for Commercial Credit and Ceylinco Insurance
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Commercial and Ceylinco is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Commercial Credit and and Ceylinco Insurance PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ceylinco Insurance PLC and Commercial Credit 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 Commercial Credit and are associated (or correlated) with Ceylinco Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ceylinco Insurance PLC has no effect on the direction of Commercial Credit i.e., Commercial Credit and Ceylinco Insurance go up and down completely randomly.
Pair Corralation between Commercial Credit and Ceylinco Insurance
Assuming the 90 days trading horizon Commercial Credit and is expected to under-perform the Ceylinco Insurance. But the stock apears to be less risky and, when comparing its historical volatility, Commercial Credit and is 2.23 times less risky than Ceylinco Insurance. The stock trades about -0.15 of its potential returns per unit of risk. The Ceylinco Insurance PLC is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 307,500 in Ceylinco Insurance PLC on November 28, 2024 and sell it today you would earn a total of 52,800 from holding Ceylinco Insurance PLC or generate 17.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Commercial Credit and vs. Ceylinco Insurance PLC
Performance |
| Timeline |
| Commercial Credit |
| Ceylinco Insurance PLC |
Commercial Credit and Ceylinco Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Commercial Credit and Ceylinco Insurance
The main advantage of trading using opposite Commercial Credit and Ceylinco Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Commercial Credit position performs unexpectedly, Ceylinco Insurance 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 Ceylinco Insurance will offset losses from the drop in Ceylinco Insurance's long position.| Commercial Credit vs. BROWNS INVESTMENTS PLC | Commercial Credit vs. Colombo Investment Trust | Commercial Credit vs. Lanka Milk Foods | Commercial Credit vs. Lanka Realty Investments |
| Ceylinco Insurance vs. Renuka City Hotel | Ceylinco Insurance vs. Convenience Foods PLC | Ceylinco Insurance vs. Pegasus Hotels of | Ceylinco Insurance vs. Tal Lanka Hotels |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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