Correlation Between Sigiriya Village and EX PACK
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By analyzing existing cross correlation between Sigiriya Village Hotels and EX PACK RUGATED CARTONS, you can compare the effects of market volatilities on Sigiriya Village and EX PACK 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 Sigiriya Village with a short position of EX PACK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sigiriya Village and EX PACK.
Diversification Opportunities for Sigiriya Village and EX PACK
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sigiriya and PACKN0000 is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Sigiriya Village Hotels and EX PACK RUGATED CARTONS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EX PACK RUGATED and Sigiriya Village 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 Sigiriya Village Hotels are associated (or correlated) with EX PACK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EX PACK RUGATED has no effect on the direction of Sigiriya Village i.e., Sigiriya Village and EX PACK go up and down completely randomly.
Pair Corralation between Sigiriya Village and EX PACK
Assuming the 90 days trading horizon Sigiriya Village Hotels is expected to generate 3.4 times more return on investment than EX PACK. However, Sigiriya Village is 3.4 times more volatile than EX PACK RUGATED CARTONS. It trades about 0.42 of its potential returns per unit of risk. EX PACK RUGATED CARTONS is currently generating about 0.07 per unit of risk. If you would invest 3,750 in Sigiriya Village Hotels on September 4, 2024 and sell it today you would earn a total of 1,250 from holding Sigiriya Village Hotels or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sigiriya Village Hotels vs. EX PACK RUGATED CARTONS
Performance |
| Timeline |
| Sigiriya Village Hotels |
| EX PACK RUGATED |
Sigiriya Village and EX PACK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sigiriya Village and EX PACK
The main advantage of trading using opposite Sigiriya Village and EX PACK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sigiriya Village position performs unexpectedly, EX PACK 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 EX PACK will offset losses from the drop in EX PACK's long position.| Sigiriya Village vs. Peoples Insurance PLC | Sigiriya Village vs. ACL Plastics PLC | Sigiriya Village vs. CEYLINCO INSURANCE PLC | Sigiriya Village vs. Sampath Bank PLC |
| EX PACK vs. Ceylon Guardian Investment | EX PACK vs. Sri Lanka Telecom | EX PACK vs. Ceylinco Insurance PLC | EX PACK vs. Ceylon Tobacco |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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