Correlation Between Mahaweli Reach and Ceylon Hospitals
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By analyzing existing cross correlation between Mahaweli Reach Hotel and Ceylon Hospitals PLC, you can compare the effects of market volatilities on Mahaweli Reach 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 Mahaweli Reach with a short position of Ceylon Hospitals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mahaweli Reach and Ceylon Hospitals.
Diversification Opportunities for Mahaweli Reach and Ceylon Hospitals
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mahaweli and Ceylon is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Mahaweli Reach Hotel 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 Mahaweli Reach 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 Mahaweli Reach Hotel 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 Mahaweli Reach i.e., Mahaweli Reach and Ceylon Hospitals go up and down completely randomly.
Pair Corralation between Mahaweli Reach and Ceylon Hospitals
Assuming the 90 days trading horizon Mahaweli Reach Hotel is expected to generate 1.88 times more return on investment than Ceylon Hospitals. However, Mahaweli Reach is 1.88 times more volatile than Ceylon Hospitals PLC. It trades about 0.24 of its potential returns per unit of risk. Ceylon Hospitals PLC is currently generating about 0.07 per unit of risk. If you would invest 1,430 in Mahaweli Reach Hotel on October 24, 2024 and sell it today you would earn a total of 840.00 from holding Mahaweli Reach Hotel or generate 58.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 91.23% |
| Values | Daily Returns |
Mahaweli Reach Hotel vs. Ceylon Hospitals PLC
Performance |
| Timeline |
| Mahaweli Reach Hotel |
| Ceylon Hospitals PLC |
Mahaweli Reach and Ceylon Hospitals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mahaweli Reach and Ceylon Hospitals
The main advantage of trading using opposite Mahaweli Reach and Ceylon Hospitals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mahaweli Reach 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.| Mahaweli Reach vs. Kandy Hotels | Mahaweli Reach vs. Pegasus Hotels of | Mahaweli Reach vs. Sigiriya Village Hotels | Mahaweli Reach vs. Colombo Investment Trust |
| Ceylon Hospitals vs. RENUKA FOODS PLC | Ceylon Hospitals vs. Palm Garden Hotels | Ceylon Hospitals vs. Dolphin Hotels PLC | Ceylon Hospitals vs. Keells Food Products |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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