Correlation Between Peoples Insurance and CEYLON HOSPITALS
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By analyzing existing cross correlation between Peoples Insurance PLC and CEYLON HOSPITALS PLC, you can compare the effects of market volatilities on Peoples Insurance 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 Peoples Insurance with a short position of CEYLON HOSPITALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and CEYLON HOSPITALS.
Diversification Opportunities for Peoples Insurance and CEYLON HOSPITALS
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Peoples and CEYLON is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance PLC 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 Peoples Insurance 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 Peoples Insurance PLC 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 Peoples Insurance i.e., Peoples Insurance and CEYLON HOSPITALS go up and down completely randomly.
Pair Corralation between Peoples Insurance and CEYLON HOSPITALS
Assuming the 90 days trading horizon Peoples Insurance PLC is expected to generate 1.61 times more return on investment than CEYLON HOSPITALS. However, Peoples Insurance is 1.61 times more volatile than CEYLON HOSPITALS PLC. It trades about 0.27 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 2,250 in Peoples Insurance PLC on September 12, 2024 and sell it today you would earn a total of 290.00 from holding Peoples Insurance PLC or generate 12.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 52.38% |
| Values | Daily Returns |
Peoples Insurance PLC vs. CEYLON HOSPITALS PLC
Performance |
| Timeline |
| Peoples Insurance PLC |
| CEYLON HOSPITALS PLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Peoples Insurance and CEYLON HOSPITALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and CEYLON HOSPITALS
The main advantage of trading using opposite Peoples Insurance and CEYLON HOSPITALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance 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.| Peoples Insurance vs. Jat Holdings PLC | Peoples Insurance vs. Lanka Credit and | Peoples Insurance vs. VIDULLANKA PLC | Peoples Insurance 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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