Correlation Between Prime Lands and Ceylon Hotels
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By analyzing existing cross correlation between Prime Lands Residencies and Ceylon Hotels, you can compare the effects of market volatilities on Prime Lands 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 Prime Lands with a short position of Ceylon Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prime Lands and Ceylon Hotels.
Diversification Opportunities for Prime Lands and Ceylon Hotels
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Prime and Ceylon is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Prime Lands Residencies and Ceylon Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ceylon Hotels and Prime Lands 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 Prime Lands Residencies 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 Prime Lands i.e., Prime Lands and Ceylon Hotels go up and down completely randomly.
Pair Corralation between Prime Lands and Ceylon Hotels
Assuming the 90 days trading horizon Prime Lands is expected to generate 1.02 times less return on investment than Ceylon Hotels. But when comparing it to its historical volatility, Prime Lands Residencies is 1.07 times less risky than Ceylon Hotels. It trades about 0.21 of its potential returns per unit of risk. Ceylon Hotels is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,730 in Ceylon Hotels on September 2, 2024 and sell it today you would earn a total of 470.00 from holding Ceylon Hotels or generate 27.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prime Lands Residencies vs. Ceylon Hotels
Performance |
| Timeline |
| Prime Lands Residencies |
| Ceylon Hotels |
Prime Lands and Ceylon Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prime Lands and Ceylon Hotels
The main advantage of trading using opposite Prime Lands and Ceylon Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prime Lands 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.| Prime Lands vs. Pegasus Hotels of | Prime Lands vs. John Keells Hotels | Prime Lands vs. Peoples Insurance PLC | Prime Lands vs. HVA Foods PLC |
| Ceylon Hotels vs. Prime Lands Residencies | Ceylon Hotels vs. VIDULLANKA PLC | Ceylon Hotels vs. EX PACK RUGATED CARTONS |
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 CEOs Directory module to screen CEOs from public companies around the world.
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