Correlation Between Ceylon Guardian and CEYLON HOSPITALS
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By analyzing existing cross correlation between Ceylon Guardian Investment and CEYLON HOSPITALS PLC, you can compare the effects of market volatilities on Ceylon Guardian 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 Ceylon Guardian with a short position of CEYLON HOSPITALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceylon Guardian and CEYLON HOSPITALS.
Diversification Opportunities for Ceylon Guardian and CEYLON HOSPITALS
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ceylon and CEYLON is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Ceylon Guardian Investment 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 Ceylon Guardian 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 Guardian Investment 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 Ceylon Guardian i.e., Ceylon Guardian and CEYLON HOSPITALS go up and down completely randomly.
Pair Corralation between Ceylon Guardian and CEYLON HOSPITALS
Assuming the 90 days trading horizon Ceylon Guardian Investment is expected to generate 1.41 times more return on investment than CEYLON HOSPITALS. However, Ceylon Guardian is 1.41 times more volatile than CEYLON HOSPITALS PLC. It trades about 0.08 of its potential returns per unit of risk. CEYLON HOSPITALS PLC is currently generating about -0.07 per unit of risk. If you would invest 9,500 in Ceylon Guardian Investment on September 4, 2024 and sell it today you would earn a total of 1,000.00 from holding Ceylon Guardian Investment or generate 10.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 53.45% |
| Values | Daily Returns |
Ceylon Guardian Investment vs. CEYLON HOSPITALS PLC
Performance |
| Timeline |
| Ceylon Guardian Inve |
| CEYLON HOSPITALS PLC |
Ceylon Guardian and CEYLON HOSPITALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceylon Guardian and CEYLON HOSPITALS
The main advantage of trading using opposite Ceylon Guardian and CEYLON HOSPITALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceylon Guardian 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's long position.| Ceylon Guardian vs. Carson Cumberbatch PLC | Ceylon Guardian vs. Nations Trust Bank | Ceylon Guardian vs. Distilleries Company of |
| CEYLON HOSPITALS vs. Peoples Insurance PLC | CEYLON HOSPITALS vs. Janashakthi Insurance | CEYLON HOSPITALS vs. Ceylon Guardian Investment | CEYLON HOSPITALS vs. Pegasus Hotels of |
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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