Correlation Between Ceylon Tobacco and EX PACK
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By analyzing existing cross correlation between Ceylon Tobacco and EX PACK RUGATED CARTONS, you can compare the effects of market volatilities on Ceylon Tobacco 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 Ceylon Tobacco with a short position of EX PACK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceylon Tobacco and EX PACK.
Diversification Opportunities for Ceylon Tobacco and EX PACK
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ceylon and PACKN0000 is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Ceylon Tobacco 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 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 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 Ceylon Tobacco i.e., Ceylon Tobacco and EX PACK go up and down completely randomly.
Pair Corralation between Ceylon Tobacco and EX PACK
Assuming the 90 days trading horizon Ceylon Tobacco is expected to generate 1.81 times less return on investment than EX PACK. But when comparing it to its historical volatility, Ceylon Tobacco is 1.75 times less risky than EX PACK. It trades about 0.19 of its potential returns per unit of risk. EX PACK RUGATED CARTONS is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,270 in EX PACK RUGATED CARTONS on September 12, 2024 and sell it today you would earn a total of 220.00 from holding EX PACK RUGATED CARTONS or generate 17.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ceylon Tobacco vs. EX PACK RUGATED CARTONS
Performance |
| Timeline |
| Ceylon Tobacco |
| EX PACK RUGATED |
Ceylon Tobacco and EX PACK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceylon Tobacco and EX PACK
The main advantage of trading using opposite Ceylon Tobacco and EX PACK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceylon Tobacco 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.| Ceylon Tobacco vs. Jat Holdings PLC | Ceylon Tobacco vs. Lanka Credit and | Ceylon Tobacco vs. VIDULLANKA PLC | Ceylon Tobacco vs. Carson Cumberbatch PLC |
| EX PACK vs. Serendib Hotels PLC | EX PACK vs. Renuka City Hotel | EX PACK vs. Pegasus Hotels of | EX PACK vs. Amana Bank |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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