Correlation Between Citrus Leisure and Sri Lanka
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By analyzing existing cross correlation between Citrus Leisure PLC and Sri Lanka Telecom, you can compare the effects of market volatilities on Citrus Leisure and Sri Lanka 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 Citrus Leisure with a short position of Sri Lanka. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citrus Leisure and Sri Lanka.
Diversification Opportunities for Citrus Leisure and Sri Lanka
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citrus and Sri is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Citrus Leisure PLC and Sri Lanka Telecom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sri Lanka Telecom and Citrus Leisure 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 Citrus Leisure PLC are associated (or correlated) with Sri Lanka. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sri Lanka Telecom has no effect on the direction of Citrus Leisure i.e., Citrus Leisure and Sri Lanka go up and down completely randomly.
Pair Corralation between Citrus Leisure and Sri Lanka
Assuming the 90 days trading horizon Citrus Leisure PLC is expected to generate 1.81 times more return on investment than Sri Lanka. However, Citrus Leisure is 1.81 times more volatile than Sri Lanka Telecom. It trades about 0.01 of its potential returns per unit of risk. Sri Lanka Telecom is currently generating about -0.05 per unit of risk. If you would invest 440.00 in Citrus Leisure PLC on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Citrus Leisure PLC or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citrus Leisure PLC vs. Sri Lanka Telecom
Performance |
| Timeline |
| Citrus Leisure PLC |
| Sri Lanka Telecom |
Citrus Leisure and Sri Lanka Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citrus Leisure and Sri Lanka
The main advantage of trading using opposite Citrus Leisure and Sri Lanka positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citrus Leisure position performs unexpectedly, Sri Lanka 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 Sri Lanka will offset losses from the drop in Sri Lanka's long position.| Citrus Leisure vs. Hatton National Bank | Citrus Leisure vs. CEYLON HOSPITALS PLC | Citrus Leisure vs. HVA Foods PLC | Citrus Leisure vs. Convenience Foods PLC |
| Sri Lanka vs. Browns Beach Hotels | Sri Lanka vs. Mahaweli Reach Hotel | Sri Lanka vs. CEYLINCO INSURANCE PLC | Sri Lanka vs. Lanka Realty Investments |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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