Correlation Between Eden Hotel and Ceylon Guardian
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By analyzing existing cross correlation between Eden Hotel Lanka and Ceylon Guardian Investment, you can compare the effects of market volatilities on Eden Hotel and Ceylon Guardian 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 Eden Hotel with a short position of Ceylon Guardian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eden Hotel and Ceylon Guardian.
Diversification Opportunities for Eden Hotel and Ceylon Guardian
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Eden and Ceylon is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Eden Hotel Lanka and Ceylon Guardian Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ceylon Guardian Inve and Eden Hotel 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 Eden Hotel Lanka are associated (or correlated) with Ceylon Guardian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ceylon Guardian Inve has no effect on the direction of Eden Hotel i.e., Eden Hotel and Ceylon Guardian go up and down completely randomly.
Pair Corralation between Eden Hotel and Ceylon Guardian
Assuming the 90 days trading horizon Eden Hotel Lanka is expected to generate 0.35 times more return on investment than Ceylon Guardian. However, Eden Hotel Lanka is 2.84 times less risky than Ceylon Guardian. It trades about -0.59 of its potential returns per unit of risk. Ceylon Guardian Investment is currently generating about -0.23 per unit of risk. If you would invest 1,630 in Eden Hotel Lanka on November 29, 2024 and sell it today you would lose (230.00) from holding Eden Hotel Lanka or give up 14.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eden Hotel Lanka vs. Ceylon Guardian Investment
Performance |
| Timeline |
| Eden Hotel Lanka |
| Ceylon Guardian Inve |
Eden Hotel and Ceylon Guardian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eden Hotel and Ceylon Guardian
The main advantage of trading using opposite Eden Hotel and Ceylon Guardian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eden Hotel position performs unexpectedly, Ceylon Guardian 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 Ceylon Guardian will offset losses from the drop in Ceylon Guardian's long position.| Eden Hotel vs. Hotel Sigiriya PLC | Eden Hotel vs. Colombo Investment Trust | Eden Hotel vs. CEYLON HOSPITALS PLC | Eden Hotel vs. Carson Cumberbatch PLC |
| Ceylon Guardian vs. Renuka Agri Foods | Ceylon Guardian vs. Singhe Hospitals | Ceylon Guardian vs. Mahaweli Reach Hotel | Ceylon Guardian vs. Kandy 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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