Correlation Between John Keells and Seylan Bank
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By analyzing existing cross correlation between John Keells Hotels and Seylan Bank PLC, you can compare the effects of market volatilities on John Keells and Seylan Bank 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 John Keells with a short position of Seylan Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Keells and Seylan Bank.
Diversification Opportunities for John Keells and Seylan Bank
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between John and Seylan is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding John Keells Hotels and Seylan Bank PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seylan Bank PLC and John Keells 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 John Keells Hotels are associated (or correlated) with Seylan Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seylan Bank PLC has no effect on the direction of John Keells i.e., John Keells and Seylan Bank go up and down completely randomly.
Pair Corralation between John Keells and Seylan Bank
Assuming the 90 days trading horizon John Keells Hotels is expected to generate 1.03 times more return on investment than Seylan Bank. However, John Keells is 1.03 times more volatile than Seylan Bank PLC. It trades about 0.27 of its potential returns per unit of risk. Seylan Bank PLC is currently generating about 0.27 per unit of risk. If you would invest 1,700 in John Keells Hotels on August 24, 2024 and sell it today you would earn a total of 150.00 from holding John Keells Hotels or generate 8.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
John Keells Hotels vs. Seylan Bank PLC
Performance |
| Timeline |
| John Keells Hotels |
| Seylan Bank PLC |
John Keells and Seylan Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Keells and Seylan Bank
The main advantage of trading using opposite John Keells and Seylan Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Keells position performs unexpectedly, Seylan Bank 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 Seylan Bank will offset losses from the drop in Seylan Bank's long position.| John Keells vs. Lanka Milk Foods | John Keells vs. Renuka Agri Foods | John Keells vs. HVA Foods PLC | John Keells vs. Convenience Foods PLC |
| Seylan Bank vs. John Keells Hotels | Seylan Bank vs. Browns Beach Hotels | Seylan Bank vs. ACL Plastics PLC | Seylan Bank vs. Ceylon Tobacco |
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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