Correlation Between Lanka Milk and EB Creasy
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By analyzing existing cross correlation between Lanka Milk Foods and EB Creasy and, you can compare the effects of market volatilities on Lanka Milk and EB Creasy 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 Lanka Milk with a short position of EB Creasy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lanka Milk and EB Creasy.
Diversification Opportunities for Lanka Milk and EB Creasy
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lanka and EBCRN0000 is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Lanka Milk Foods and EB Creasy and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EB Creasy and Lanka Milk 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 Lanka Milk Foods are associated (or correlated) with EB Creasy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EB Creasy has no effect on the direction of Lanka Milk i.e., Lanka Milk and EB Creasy go up and down completely randomly.
Pair Corralation between Lanka Milk and EB Creasy
Assuming the 90 days trading horizon Lanka Milk Foods is expected to generate 1.02 times more return on investment than EB Creasy. However, Lanka Milk is 1.02 times more volatile than EB Creasy and. It trades about 0.26 of its potential returns per unit of risk. EB Creasy and is currently generating about 0.12 per unit of risk. If you would invest 2,550 in Lanka Milk Foods on September 12, 2024 and sell it today you would earn a total of 850.00 from holding Lanka Milk Foods or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.61% |
| Values | Daily Returns |
Lanka Milk Foods vs. EB Creasy and
Performance |
| Timeline |
| Lanka Milk Foods |
| EB Creasy |
Lanka Milk and EB Creasy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lanka Milk and EB Creasy
The main advantage of trading using opposite Lanka Milk and EB Creasy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lanka Milk position performs unexpectedly, EB Creasy 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 EB Creasy will offset losses from the drop in EB Creasy's long position.| Lanka Milk vs. Jat Holdings PLC | Lanka Milk vs. Lanka Credit and | Lanka Milk vs. VIDULLANKA PLC | Lanka Milk vs. Carson Cumberbatch PLC |
| EB Creasy vs. Lanka Credit and | EB Creasy vs. ACL Plastics PLC | EB Creasy vs. PEOPLES LEASING FINANCE | EB Creasy vs. Seylan Bank PLC |
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 CEOs Directory module to screen CEOs from public companies around the world.
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