Correlation Between Ceylon Guardian and Lanka Credit
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By analyzing existing cross correlation between Ceylon Guardian Investment and Lanka Credit and, you can compare the effects of market volatilities on Ceylon Guardian and Lanka Credit 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 Lanka Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceylon Guardian and Lanka Credit.
Diversification Opportunities for Ceylon Guardian and Lanka Credit
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ceylon and Lanka is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Ceylon Guardian Investment and Lanka Credit and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lanka Credit 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 Lanka Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lanka Credit has no effect on the direction of Ceylon Guardian i.e., Ceylon Guardian and Lanka Credit go up and down completely randomly.
Pair Corralation between Ceylon Guardian and Lanka Credit
Assuming the 90 days trading horizon Ceylon Guardian Investment is expected to generate 0.71 times more return on investment than Lanka Credit. However, Ceylon Guardian Investment is 1.41 times less risky than Lanka Credit. It trades about 0.06 of its potential returns per unit of risk. Lanka Credit and is currently generating about 0.02 per unit of risk. If you would invest 6,310 in Ceylon Guardian Investment on September 2, 2024 and sell it today you would earn a total of 4,190 from holding Ceylon Guardian Investment or generate 66.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 92.84% |
| Values | Daily Returns |
Ceylon Guardian Investment vs. Lanka Credit and
Performance |
| Timeline |
| Ceylon Guardian Inve |
| Lanka Credit |
Ceylon Guardian and Lanka Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceylon Guardian and Lanka Credit
The main advantage of trading using opposite Ceylon Guardian and Lanka Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceylon Guardian position performs unexpectedly, Lanka Credit 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 Lanka Credit will offset losses from the drop in Lanka Credit's long position.| Ceylon Guardian vs. Commercial Credit and | Ceylon Guardian vs. Amaya Leisure PLC | Ceylon Guardian vs. COMMERCIAL BANK OF | Ceylon Guardian vs. Ceylon Cold Stores |
| Lanka Credit vs. Prime Lands Residencies | Lanka Credit vs. VIDULLANKA PLC | Lanka Credit vs. EX PACK RUGATED CARTONS |
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 CEOs Directory module to screen CEOs from public companies around the world.
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