Correlation Between Lion Brewery and VIDULLANKA PLC
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By analyzing existing cross correlation between Lion Brewery Ceylon and VIDULLANKA PLC, you can compare the effects of market volatilities on Lion Brewery and VIDULLANKA PLC 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 VIDULLANKA PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion Brewery and VIDULLANKA PLC.
Diversification Opportunities for Lion Brewery and VIDULLANKA PLC
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lion and VIDULLANKA is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Lion Brewery Ceylon and VIDULLANKA PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIDULLANKA PLC 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 VIDULLANKA PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIDULLANKA PLC has no effect on the direction of Lion Brewery i.e., Lion Brewery and VIDULLANKA PLC go up and down completely randomly.
Pair Corralation between Lion Brewery and VIDULLANKA PLC
Assuming the 90 days trading horizon Lion Brewery Ceylon is expected to under-perform the VIDULLANKA PLC. But the stock apears to be less risky and, when comparing its historical volatility, Lion Brewery Ceylon is 1.77 times less risky than VIDULLANKA PLC. The stock trades about -0.05 of its potential returns per unit of risk. The VIDULLANKA PLC is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 710.00 in VIDULLANKA PLC on August 30, 2024 and sell it today you would earn a total of 200.00 from holding VIDULLANKA PLC or generate 28.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 91.45% |
| Values | Daily Returns |
Lion Brewery Ceylon vs. VIDULLANKA PLC
Performance |
| Timeline |
| Lion Brewery Ceylon |
| VIDULLANKA PLC |
Lion Brewery and VIDULLANKA PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion Brewery and VIDULLANKA PLC
The main advantage of trading using opposite Lion Brewery and VIDULLANKA PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion Brewery position performs unexpectedly, VIDULLANKA PLC 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 VIDULLANKA PLC will offset losses from the drop in VIDULLANKA PLC's long position.| Lion Brewery vs. EX PACK RUGATED CARTONS | Lion Brewery vs. PANASIAN POWER PLC | Lion Brewery vs. Distilleries Company of | Lion Brewery vs. Palm Garden Hotels |
| VIDULLANKA PLC vs. Ceylon Hospitals PLC | VIDULLANKA PLC vs. Lion Brewery Ceylon | VIDULLANKA PLC vs. RENUKA FOODS PLC | VIDULLANKA PLC 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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