Correlation Between Galadari Hotels and Ceylon Hospitals
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By analyzing existing cross correlation between Galadari Hotels Lanka and Ceylon Hospitals PLC, you can compare the effects of market volatilities on Galadari Hotels 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 Galadari Hotels with a short position of Ceylon Hospitals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galadari Hotels and Ceylon Hospitals.
Diversification Opportunities for Galadari Hotels and Ceylon Hospitals
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Galadari and Ceylon is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Galadari Hotels Lanka 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 Galadari Hotels 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 Galadari Hotels Lanka 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 Galadari Hotels i.e., Galadari Hotels and Ceylon Hospitals go up and down completely randomly.
Pair Corralation between Galadari Hotels and Ceylon Hospitals
Assuming the 90 days trading horizon Galadari Hotels Lanka is expected to generate 1.26 times more return on investment than Ceylon Hospitals. However, Galadari Hotels is 1.26 times more volatile than Ceylon Hospitals PLC. It trades about 0.12 of its potential returns per unit of risk. Ceylon Hospitals PLC is currently generating about -0.01 per unit of risk. If you would invest 1,520 in Galadari Hotels Lanka on August 27, 2024 and sell it today you would earn a total of 150.00 from holding Galadari Hotels Lanka or generate 9.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 75.0% |
| Values | Daily Returns |
Galadari Hotels Lanka vs. Ceylon Hospitals PLC
Performance |
| Timeline |
| Galadari Hotels Lanka |
| Ceylon Hospitals PLC |
Galadari Hotels and Ceylon Hospitals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galadari Hotels and Ceylon Hospitals
The main advantage of trading using opposite Galadari Hotels and Ceylon Hospitals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galadari Hotels 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.| Galadari Hotels vs. Sigiriya Village Hotels | Galadari Hotels vs. Nuwara Eliya Hotels | Galadari Hotels vs. Sanasa Development Bank | Galadari Hotels vs. Lion Brewery Ceylon |
| Ceylon Hospitals vs. Hotel Sigiriya PLC | Ceylon Hospitals vs. Ceylon Hotels | Ceylon Hospitals vs. Galadari Hotels Lanka | Ceylon Hospitals vs. SERENDIB HOTELS PLC |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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