Correlation Between Pegasus Hotels and CEYLON HOSPITALS
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By analyzing existing cross correlation between Pegasus Hotels of and CEYLON HOSPITALS PLC, you can compare the effects of market volatilities on Pegasus Hotels 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 Pegasus Hotels with a short position of CEYLON HOSPITALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pegasus Hotels and CEYLON HOSPITALS.
Diversification Opportunities for Pegasus Hotels and CEYLON HOSPITALS
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Pegasus and CEYLON is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Pegasus Hotels of 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 Pegasus Hotels 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 Pegasus Hotels of 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 Pegasus Hotels i.e., Pegasus Hotels and CEYLON HOSPITALS go up and down completely randomly.
Pair Corralation between Pegasus Hotels and CEYLON HOSPITALS
Assuming the 90 days trading horizon Pegasus Hotels of is expected to generate 3.67 times more return on investment than CEYLON HOSPITALS. However, Pegasus Hotels is 3.67 times more volatile than CEYLON HOSPITALS PLC. It trades about 0.23 of its potential returns per unit of risk. CEYLON HOSPITALS PLC is currently generating about -0.27 per unit of risk. If you would invest 3,080 in Pegasus Hotels of on September 12, 2024 and sell it today you would earn a total of 730.00 from holding Pegasus Hotels of or generate 23.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 52.38% |
| Values | Daily Returns |
Pegasus Hotels of vs. CEYLON HOSPITALS PLC
Performance |
| Timeline |
| Pegasus Hotels |
| CEYLON HOSPITALS PLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Pegasus Hotels and CEYLON HOSPITALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pegasus Hotels and CEYLON HOSPITALS
The main advantage of trading using opposite Pegasus Hotels and CEYLON HOSPITALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pegasus Hotels 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's long position.| Pegasus Hotels vs. Jat Holdings PLC | Pegasus Hotels vs. Lanka Credit and | Pegasus Hotels vs. VIDULLANKA PLC | Pegasus Hotels vs. Carson Cumberbatch PLC |
| CEYLON HOSPITALS vs. HNB Finance | CEYLON HOSPITALS vs. Prime Lands Residencies | CEYLON HOSPITALS vs. Jat Holdings PLC | CEYLON HOSPITALS vs. E M L |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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