Correlation Between Kandy Hotels and Ceylon Hospitals
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By analyzing existing cross correlation between Kandy Hotels and Ceylon Hospitals PLC, you can compare the effects of market volatilities on Kandy 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 Kandy Hotels with a short position of Ceylon Hospitals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kandy Hotels and Ceylon Hospitals.
Diversification Opportunities for Kandy Hotels and Ceylon Hospitals
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kandy and Ceylon is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Kandy Hotels 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 Kandy 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 Kandy Hotels 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 Kandy Hotels i.e., Kandy Hotels and Ceylon Hospitals go up and down completely randomly.
Pair Corralation between Kandy Hotels and Ceylon Hospitals
Assuming the 90 days trading horizon Kandy Hotels is expected to generate 1.89 times more return on investment than Ceylon Hospitals. However, Kandy Hotels is 1.89 times more volatile than Ceylon Hospitals PLC. It trades about 0.41 of its potential returns per unit of risk. Ceylon Hospitals PLC is currently generating about -0.03 per unit of risk. If you would invest 800.00 in Kandy Hotels on September 2, 2024 and sell it today you would earn a total of 310.00 from holding Kandy Hotels or generate 38.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.0% |
| Values | Daily Returns |
Kandy Hotels vs. Ceylon Hospitals PLC
Performance |
| Timeline |
| Kandy Hotels |
| Ceylon Hospitals PLC |
Kandy Hotels and Ceylon Hospitals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kandy Hotels and Ceylon Hospitals
The main advantage of trading using opposite Kandy Hotels and Ceylon Hospitals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kandy 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.| Kandy Hotels vs. Prime Lands Residencies | Kandy Hotels vs. VIDULLANKA PLC | Kandy Hotels vs. EX PACK RUGATED CARTONS |
| Ceylon Hospitals vs. Asian Hotels and | Ceylon Hospitals vs. Serendib Hotels PLC | Ceylon Hospitals vs. Kandy Hotels | Ceylon Hospitals vs. Singhe Hospitals |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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