Correlation Between Ceylon Tobacco and HNB Finance
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ceylon Tobacco and HNB Finance, you can compare the effects of market volatilities on Ceylon Tobacco and HNB Finance 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 Ceylon Tobacco with a short position of HNB Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceylon Tobacco and HNB Finance.
Diversification Opportunities for Ceylon Tobacco and HNB Finance
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ceylon and HNB is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Ceylon Tobacco and HNB Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HNB Finance and Ceylon Tobacco 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 Ceylon Tobacco are associated (or correlated) with HNB Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HNB Finance has no effect on the direction of Ceylon Tobacco i.e., Ceylon Tobacco and HNB Finance go up and down completely randomly.
Pair Corralation between Ceylon Tobacco and HNB Finance
Assuming the 90 days trading horizon Ceylon Tobacco is expected to generate 0.41 times more return on investment than HNB Finance. However, Ceylon Tobacco is 2.44 times less risky than HNB Finance. It trades about 0.12 of its potential returns per unit of risk. HNB Finance is currently generating about 0.04 per unit of risk. If you would invest 95,975 in Ceylon Tobacco on September 2, 2024 and sell it today you would earn a total of 31,525 from holding Ceylon Tobacco or generate 32.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.0% |
| Values | Daily Returns |
Ceylon Tobacco vs. HNB Finance
Performance |
| Timeline |
| Ceylon Tobacco |
| HNB Finance |
Ceylon Tobacco and HNB Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceylon Tobacco and HNB Finance
The main advantage of trading using opposite Ceylon Tobacco and HNB Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceylon Tobacco position performs unexpectedly, HNB Finance 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 HNB Finance will offset losses from the drop in HNB Finance's long position.| Ceylon Tobacco vs. Prime Lands Residencies | Ceylon Tobacco vs. VIDULLANKA PLC | Ceylon Tobacco vs. EX PACK RUGATED CARTONS |
| HNB Finance vs. Prime Lands Residencies | HNB Finance vs. VIDULLANKA PLC | HNB Finance vs. EX PACK RUGATED CARTONS |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |