Correlation Between Pegasus Hotels and Ceylon Hotels
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By analyzing existing cross correlation between Pegasus Hotels of and Ceylon Hotels, you can compare the effects of market volatilities on Pegasus Hotels and Ceylon Hotels 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 Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pegasus Hotels and Ceylon Hotels.
Diversification Opportunities for Pegasus Hotels and Ceylon Hotels
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pegasus and Ceylon is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Pegasus Hotels of and Ceylon Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ceylon Hotels 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 Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ceylon Hotels has no effect on the direction of Pegasus Hotels i.e., Pegasus Hotels and Ceylon Hotels go up and down completely randomly.
Pair Corralation between Pegasus Hotels and Ceylon Hotels
Assuming the 90 days trading horizon Pegasus Hotels is expected to generate 1.23 times less return on investment than Ceylon Hotels. In addition to that, Pegasus Hotels is 1.51 times more volatile than Ceylon Hotels. It trades about 0.15 of its total potential returns per unit of risk. Ceylon Hotels is currently generating about 0.27 per unit of volatility. If you would invest 1,900 in Ceylon Hotels on September 1, 2024 and sell it today you would earn a total of 300.00 from holding Ceylon Hotels or generate 15.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pegasus Hotels of vs. Ceylon Hotels
Performance |
| Timeline |
| Pegasus Hotels |
| Ceylon Hotels |
Pegasus Hotels and Ceylon Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pegasus Hotels and Ceylon Hotels
The main advantage of trading using opposite Pegasus Hotels and Ceylon Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pegasus Hotels position performs unexpectedly, Ceylon Hotels 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 Hotels will offset losses from the drop in Ceylon Hotels' long position.| Pegasus Hotels vs. Ceylon Hotels | Pegasus Hotels vs. Ceylon Tobacco | Pegasus Hotels vs. Citrus Leisure PLC | Pegasus Hotels vs. Galadari Hotels Lanka |
| Ceylon Hotels vs. Seylan Bank PLC | Ceylon Hotels vs. Union Chemicals Lanka | Ceylon Hotels vs. Citrus Leisure PLC | Ceylon Hotels vs. Sampath 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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