Correlation Between Seylan Bank and Lankem Ceylon
Specify exactly 2 symbols:
By analyzing existing cross correlation between Seylan Bank PLC and Lankem Ceylon PLC, you can compare the effects of market volatilities on Seylan Bank and Lankem Ceylon 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 Seylan Bank with a short position of Lankem Ceylon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seylan Bank and Lankem Ceylon.
Diversification Opportunities for Seylan Bank and Lankem Ceylon
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Seylan and Lankem is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Seylan Bank PLC and Lankem Ceylon PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lankem Ceylon PLC and Seylan Bank 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 Seylan Bank PLC are associated (or correlated) with Lankem Ceylon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lankem Ceylon PLC has no effect on the direction of Seylan Bank i.e., Seylan Bank and Lankem Ceylon go up and down completely randomly.
Pair Corralation between Seylan Bank and Lankem Ceylon
Assuming the 90 days trading horizon Seylan Bank PLC is expected to generate 0.89 times more return on investment than Lankem Ceylon. However, Seylan Bank PLC is 1.13 times less risky than Lankem Ceylon. It trades about 0.1 of its potential returns per unit of risk. Lankem Ceylon PLC is currently generating about 0.02 per unit of risk. If you would invest 2,960 in Seylan Bank PLC on August 31, 2024 and sell it today you would earn a total of 3,140 from holding Seylan Bank PLC or generate 106.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.16% |
| Values | Daily Returns |
Seylan Bank PLC vs. Lankem Ceylon PLC
Performance |
| Timeline |
| Seylan Bank PLC |
| Lankem Ceylon PLC |
Seylan Bank and Lankem Ceylon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seylan Bank and Lankem Ceylon
The main advantage of trading using opposite Seylan Bank and Lankem Ceylon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seylan Bank position performs unexpectedly, Lankem Ceylon 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 Lankem Ceylon will offset losses from the drop in Lankem Ceylon's long position.| Seylan Bank vs. Tal Lanka Hotels | Seylan Bank vs. Serendib Hotels PLC | Seylan Bank vs. Asian Hotels and | Seylan Bank vs. Browns Beach Hotels |
| Lankem Ceylon vs. Pegasus Hotels of | Lankem Ceylon vs. Ceylon Hospitals PLC | Lankem Ceylon vs. Renuka Agri Foods | Lankem Ceylon vs. Ceylon Beverage Holdings |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Commodity Directory Find actively traded commodities issued by global exchanges |