Correlation Between Serendib Hotels and Ceylon Hospitals
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By analyzing existing cross correlation between Serendib Hotels PLC and Ceylon Hospitals PLC, you can compare the effects of market volatilities on Serendib Hotels 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 Serendib Hotels with a short position of Ceylon Hospitals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Serendib Hotels and Ceylon Hospitals.
Diversification Opportunities for Serendib Hotels and Ceylon Hospitals
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Serendib and Ceylon is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Serendib Hotels 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 Serendib Hotels 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 Serendib Hotels 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 Serendib Hotels i.e., Serendib Hotels and Ceylon Hospitals go up and down completely randomly.
Pair Corralation between Serendib Hotels and Ceylon Hospitals
Assuming the 90 days trading horizon Serendib Hotels PLC is expected to generate 1.07 times more return on investment than Ceylon Hospitals. However, Serendib Hotels is 1.07 times more volatile than Ceylon Hospitals PLC. It trades about 0.09 of its potential returns per unit of risk. Ceylon Hospitals PLC is currently generating about -0.01 per unit of risk. If you would invest 880.00 in Serendib Hotels PLC on August 31, 2024 and sell it today you would earn a total of 890.00 from holding Serendib Hotels PLC or generate 101.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 73.58% |
| Values | Daily Returns |
Serendib Hotels PLC vs. Ceylon Hospitals PLC
Performance |
| Timeline |
| Serendib Hotels PLC |
| Ceylon Hospitals PLC |
Serendib Hotels and Ceylon Hospitals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Serendib Hotels and Ceylon Hospitals
The main advantage of trading using opposite Serendib Hotels and Ceylon Hospitals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Serendib Hotels 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' long position.| Serendib Hotels vs. HNB Finance | Serendib Hotels vs. Prime Lands Residencies | Serendib Hotels vs. Jat Holdings PLC | Serendib Hotels vs. E M L |
| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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