Correlation Between Singhe Hospitals and Ceylon Beverage
Specify exactly 2 symbols:
By analyzing existing cross correlation between Singhe Hospitals and Ceylon Beverage Holdings, you can compare the effects of market volatilities on Singhe Hospitals and Ceylon Beverage 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 Singhe Hospitals with a short position of Ceylon Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singhe Hospitals and Ceylon Beverage.
Diversification Opportunities for Singhe Hospitals and Ceylon Beverage
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Singhe and Ceylon is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Singhe Hospitals and Ceylon Beverage Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ceylon Beverage Holdings and Singhe Hospitals 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 Singhe Hospitals are associated (or correlated) with Ceylon Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ceylon Beverage Holdings has no effect on the direction of Singhe Hospitals i.e., Singhe Hospitals and Ceylon Beverage go up and down completely randomly.
Pair Corralation between Singhe Hospitals and Ceylon Beverage
Assuming the 90 days trading horizon Singhe Hospitals is expected to generate 8.15 times less return on investment than Ceylon Beverage. But when comparing it to its historical volatility, Singhe Hospitals is 1.06 times less risky than Ceylon Beverage. It trades about 0.03 of its potential returns per unit of risk. Ceylon Beverage Holdings is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 146,150 in Ceylon Beverage Holdings on September 3, 2024 and sell it today you would earn a total of 73,875 from holding Ceylon Beverage Holdings or generate 50.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 48.18% |
| Values | Daily Returns |
Singhe Hospitals vs. Ceylon Beverage Holdings
Performance |
| Timeline |
| Singhe Hospitals |
| Ceylon Beverage Holdings |
Singhe Hospitals and Ceylon Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singhe Hospitals and Ceylon Beverage
The main advantage of trading using opposite Singhe Hospitals and Ceylon Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singhe Hospitals position performs unexpectedly, Ceylon Beverage 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 Beverage will offset losses from the drop in Ceylon Beverage's long position.| Singhe Hospitals vs. Lanka Credit and | Singhe Hospitals vs. VIDULLANKA PLC | Singhe Hospitals vs. Carson Cumberbatch PLC | Singhe Hospitals vs. Peoples Insurance PLC |
| Ceylon Beverage vs. Singhe Hospitals | Ceylon Beverage vs. Pegasus Hotels of | Ceylon Beverage vs. Eden Hotel Lanka | Ceylon Beverage vs. Lighthouse Hotel 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |