Correlation Between Lion Brewery and EX PACK
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By analyzing existing cross correlation between Lion Brewery Ceylon and EX PACK RUGATED CARTONS, you can compare the effects of market volatilities on Lion Brewery and EX PACK 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 Lion Brewery with a short position of EX PACK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion Brewery and EX PACK.
Diversification Opportunities for Lion Brewery and EX PACK
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lion and PACKN0000 is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Lion Brewery Ceylon and EX PACK RUGATED CARTONS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EX PACK RUGATED and Lion Brewery 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 Lion Brewery Ceylon are associated (or correlated) with EX PACK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EX PACK RUGATED has no effect on the direction of Lion Brewery i.e., Lion Brewery and EX PACK go up and down completely randomly.
Pair Corralation between Lion Brewery and EX PACK
Assuming the 90 days trading horizon Lion Brewery Ceylon is expected to generate 1.3 times more return on investment than EX PACK. However, Lion Brewery is 1.3 times more volatile than EX PACK RUGATED CARTONS. It trades about 0.07 of its potential returns per unit of risk. EX PACK RUGATED CARTONS is currently generating about 0.04 per unit of risk. If you would invest 89,500 in Lion Brewery Ceylon on September 2, 2024 and sell it today you would earn a total of 20,500 from holding Lion Brewery Ceylon or generate 22.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 83.76% |
| Values | Daily Returns |
Lion Brewery Ceylon vs. EX PACK RUGATED CARTONS
Performance |
| Timeline |
| Lion Brewery Ceylon |
| EX PACK RUGATED |
Lion Brewery and EX PACK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion Brewery and EX PACK
The main advantage of trading using opposite Lion Brewery and EX PACK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion Brewery position performs unexpectedly, EX PACK 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 EX PACK will offset losses from the drop in EX PACK's long position.| Lion Brewery vs. Prime Lands Residencies | Lion Brewery vs. VIDULLANKA PLC | Lion Brewery vs. EX PACK RUGATED CARTONS |
| EX PACK vs. COMMERCIAL BANK OF | EX PACK vs. HVA Foods PLC | EX PACK vs. CEYLINCO INSURANCE PLC | EX PACK vs. Lanka Realty Investments |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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