Correlation Between Hotel Sigiriya and Ceylon Hospitals
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By analyzing existing cross correlation between Hotel Sigiriya PLC and Ceylon Hospitals PLC, you can compare the effects of market volatilities on Hotel Sigiriya 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 Hotel Sigiriya with a short position of Ceylon Hospitals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hotel Sigiriya and Ceylon Hospitals.
Diversification Opportunities for Hotel Sigiriya and Ceylon Hospitals
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hotel and Ceylon is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Hotel Sigiriya PLC 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 Hotel Sigiriya 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 Hotel Sigiriya PLC 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 Hotel Sigiriya i.e., Hotel Sigiriya and Ceylon Hospitals go up and down completely randomly.
Pair Corralation between Hotel Sigiriya and Ceylon Hospitals
Assuming the 90 days trading horizon Hotel Sigiriya PLC is expected to under-perform the Ceylon Hospitals. In addition to that, Hotel Sigiriya is 1.48 times more volatile than Ceylon Hospitals PLC. It trades about -0.02 of its total potential returns per unit of risk. Ceylon Hospitals PLC is currently generating about 0.07 per unit of volatility. If you would invest 12,300 in Ceylon Hospitals PLC on November 3, 2024 and sell it today you would earn a total of 350.00 from holding Ceylon Hospitals PLC or generate 2.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hotel Sigiriya PLC vs. Ceylon Hospitals PLC
Performance |
| Timeline |
| Hotel Sigiriya PLC |
| Ceylon Hospitals PLC |
Hotel Sigiriya and Ceylon Hospitals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hotel Sigiriya and Ceylon Hospitals
The main advantage of trading using opposite Hotel Sigiriya and Ceylon Hospitals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hotel Sigiriya 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.| Hotel Sigiriya vs. Tal Lanka Hotels | Hotel Sigiriya vs. Convenience Foods PLC | Hotel Sigiriya vs. Tangerine Beach Hotels | Hotel Sigiriya vs. Mahaweli Reach Hotel |
| Ceylon Hospitals vs. Distilleries Company of | Ceylon Hospitals vs. Softlogic Life Insurance | Ceylon Hospitals vs. Merchant Bank of | Ceylon Hospitals vs. Ceylon Cold Stores |
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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