Correlation Between Xito SA and Ceylon Hospitals
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By analyzing existing cross correlation between xito SA XITO and Ceylon Hospitals PLC, you can compare the effects of market volatilities on Xito SA and Ceylon Hospitals 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 Xito SA with a short position of Ceylon Hospitals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xito SA and Ceylon Hospitals.
Diversification Opportunities for Xito SA and Ceylon Hospitals
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Xito and Ceylon is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding xito SA XITO and Ceylon Hospitals PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ceylon Hospitals PLC and Xito SA 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 xito SA XITO are associated (or correlated) with Ceylon Hospitals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ceylon Hospitals PLC has no effect on the direction of Xito SA i.e., Xito SA and Ceylon Hospitals go up and down completely randomly.
Pair Corralation between Xito SA and Ceylon Hospitals
Assuming the 90 days trading horizon xito SA XITO is expected to under-perform the Ceylon Hospitals. But the stock apears to be less risky and, when comparing its historical volatility, xito SA XITO is 1.16 times less risky than Ceylon Hospitals. The stock trades about -0.11 of its potential returns per unit of risk. The Ceylon Hospitals PLC is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 12,500 in Ceylon Hospitals PLC on September 2, 2024 and sell it today you would lose (1,075) from holding Ceylon Hospitals PLC or give up 8.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 72.8% |
| Values | Daily Returns |
xito SA XITO vs. Ceylon Hospitals PLC
Performance |
| Timeline |
| xito SA XITO |
| Ceylon Hospitals PLC |
Xito SA and Ceylon Hospitals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xito SA and Ceylon Hospitals
The main advantage of trading using opposite Xito SA and Ceylon Hospitals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xito SA position performs unexpectedly, Ceylon Hospitals 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 Hospitals will offset losses from the drop in Ceylon Hospitals' long position.| Xito SA vs. Peoples Insurance PLC | Xito SA vs. HATTON NATIONAL BANK | Xito SA vs. Union Bank | Xito SA vs. Lanka Realty Investments |
| Ceylon Hospitals vs. Asian Hotels and | Ceylon Hospitals vs. Serendib Hotels PLC | Ceylon Hospitals vs. Kandy Hotels | Ceylon Hospitals vs. Singhe Hospitals |
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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