Correlation Between Ceylon Guardian and HNB Finance
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By analyzing existing cross correlation between Ceylon Guardian Investment and HNB Finance, you can compare the effects of market volatilities on Ceylon Guardian and HNB Finance 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 HNB Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceylon Guardian and HNB Finance.
Diversification Opportunities for Ceylon Guardian and HNB Finance
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ceylon and HNB is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Ceylon Guardian Investment and HNB Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HNB Finance 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 HNB Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HNB Finance has no effect on the direction of Ceylon Guardian i.e., Ceylon Guardian and HNB Finance go up and down completely randomly.
Pair Corralation between Ceylon Guardian and HNB Finance
Assuming the 90 days trading horizon Ceylon Guardian Investment is expected to generate 0.97 times more return on investment than HNB Finance. However, Ceylon Guardian Investment is 1.03 times less risky than HNB Finance. It trades about 0.06 of its potential returns per unit of risk. HNB Finance is currently generating about 0.03 per unit of risk. If you would invest 6,000 in Ceylon Guardian Investment on August 28, 2024 and sell it today you would earn a total of 4,650 from holding Ceylon Guardian Investment or generate 77.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 94.61% |
| Values | Daily Returns |
Ceylon Guardian Investment vs. HNB Finance
Performance |
| Timeline |
| Ceylon Guardian Inve |
| HNB Finance |
Ceylon Guardian and HNB Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceylon Guardian and HNB Finance
The main advantage of trading using opposite Ceylon Guardian and HNB Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceylon Guardian position performs unexpectedly, HNB Finance 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 HNB Finance will offset losses from the drop in HNB Finance's long position.| Ceylon Guardian vs. Trans Asia Hotels | Ceylon Guardian vs. Browns Beach Hotels | Ceylon Guardian vs. SERENDIB HOTELS PLC | Ceylon Guardian vs. Convenience Foods PLC |
| HNB Finance vs. Lanka Realty Investments | HNB Finance vs. Aitken Spence Hotel | HNB Finance vs. Serendib Hotels PLC | HNB Finance vs. Convenience Foods 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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