Correlation Between Seylan Bank and Singhe Hospitals
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By analyzing existing cross correlation between Seylan Bank PLC and Singhe Hospitals, you can compare the effects of market volatilities on Seylan Bank and Singhe 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 Seylan Bank with a short position of Singhe Hospitals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seylan Bank and Singhe Hospitals.
Diversification Opportunities for Seylan Bank and Singhe Hospitals
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Seylan and Singhe is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Seylan Bank PLC and Singhe Hospitals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singhe Hospitals 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 Singhe Hospitals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singhe Hospitals has no effect on the direction of Seylan Bank i.e., Seylan Bank and Singhe Hospitals go up and down completely randomly.
Pair Corralation between Seylan Bank and Singhe Hospitals
Assuming the 90 days trading horizon Seylan Bank PLC is expected to generate 0.79 times more return on investment than Singhe Hospitals. However, Seylan Bank PLC is 1.27 times less risky than Singhe Hospitals. It trades about 0.23 of its potential returns per unit of risk. Singhe Hospitals is currently generating about -0.06 per unit of risk. If you would invest 5,380 in Seylan Bank PLC on August 31, 2024 and sell it today you would earn a total of 550.00 from holding Seylan Bank PLC or generate 10.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seylan Bank PLC vs. Singhe Hospitals
Performance |
| Timeline |
| Seylan Bank PLC |
| Singhe Hospitals |
Seylan Bank and Singhe Hospitals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seylan Bank and Singhe Hospitals
The main advantage of trading using opposite Seylan Bank and Singhe Hospitals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seylan Bank position performs unexpectedly, Singhe 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 Singhe Hospitals will offset losses from the drop in Singhe Hospitals' 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 |
| Singhe Hospitals vs. Asiri Surgical Hospital | Singhe Hospitals vs. CEYLON HOSPITALS PLC | Singhe Hospitals vs. Ceylon Hospitals PLC | Singhe Hospitals vs. Chemanex 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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