Correlation Between Mahaweli Reach and CEYLINCO INSURANCE
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By analyzing existing cross correlation between Mahaweli Reach Hotel and CEYLINCO INSURANCE PLC, you can compare the effects of market volatilities on Mahaweli Reach and CEYLINCO INSURANCE 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 CEYLINCO INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mahaweli Reach and CEYLINCO INSURANCE.
Diversification Opportunities for Mahaweli Reach and CEYLINCO INSURANCE
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mahaweli and CEYLINCO is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Mahaweli Reach Hotel and CEYLINCO INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEYLINCO INSURANCE 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 CEYLINCO INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEYLINCO INSURANCE PLC has no effect on the direction of Mahaweli Reach i.e., Mahaweli Reach and CEYLINCO INSURANCE go up and down completely randomly.
Pair Corralation between Mahaweli Reach and CEYLINCO INSURANCE
Assuming the 90 days trading horizon Mahaweli Reach Hotel is expected to generate 2.31 times more return on investment than CEYLINCO INSURANCE. However, Mahaweli Reach is 2.31 times more volatile than CEYLINCO INSURANCE PLC. It trades about 0.04 of its potential returns per unit of risk. CEYLINCO INSURANCE PLC is currently generating about 0.01 per unit of risk. If you would invest 1,280 in Mahaweli Reach Hotel on August 28, 2024 and sell it today you would earn a total of 450.00 from holding Mahaweli Reach Hotel or generate 35.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.64% |
| Values | Daily Returns |
Mahaweli Reach Hotel vs. CEYLINCO INSURANCE PLC
Performance |
| Timeline |
| Mahaweli Reach Hotel |
| CEYLINCO INSURANCE PLC |
Mahaweli Reach and CEYLINCO INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mahaweli Reach and CEYLINCO INSURANCE
The main advantage of trading using opposite Mahaweli Reach and CEYLINCO INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mahaweli Reach position performs unexpectedly, CEYLINCO INSURANCE 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 CEYLINCO INSURANCE will offset losses from the drop in CEYLINCO INSURANCE's long position.| Mahaweli Reach vs. Dolphin Hotels PLC | Mahaweli Reach vs. HATTON NATIONAL BANK | Mahaweli Reach vs. Sri Lanka Telecom | Mahaweli Reach vs. Seylan Bank PLC |
| CEYLINCO INSURANCE vs. Sanasa Development Bank | CEYLINCO INSURANCE vs. Union Chemicals Lanka | CEYLINCO INSURANCE vs. Union Bank | CEYLINCO INSURANCE vs. Ceylon Guardian Investment |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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