Correlation Between Singhe Hospitals and Lanka Credit
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By analyzing existing cross correlation between Singhe Hospitals and Lanka Credit and, you can compare the effects of market volatilities on Singhe Hospitals and Lanka Credit 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 Lanka Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singhe Hospitals and Lanka Credit.
Diversification Opportunities for Singhe Hospitals and Lanka Credit
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Singhe and Lanka is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Singhe Hospitals and Lanka Credit and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lanka Credit 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 Lanka Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lanka Credit has no effect on the direction of Singhe Hospitals i.e., Singhe Hospitals and Lanka Credit go up and down completely randomly.
Pair Corralation between Singhe Hospitals and Lanka Credit
Assuming the 90 days trading horizon Singhe Hospitals is expected to generate 3.61 times less return on investment than Lanka Credit. But when comparing it to its historical volatility, Singhe Hospitals is 1.24 times less risky than Lanka Credit. It trades about 0.0 of its potential returns per unit of risk. Lanka Credit and is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 240.00 in Lanka Credit and on August 31, 2024 and sell it today you would lose (30.00) from holding Lanka Credit and or give up 12.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.61% |
| Values | Daily Returns |
Singhe Hospitals vs. Lanka Credit and
Performance |
| Timeline |
| Singhe Hospitals |
| Lanka Credit |
Singhe Hospitals and Lanka Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singhe Hospitals and Lanka Credit
The main advantage of trading using opposite Singhe Hospitals and Lanka Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singhe Hospitals position performs unexpectedly, Lanka Credit 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 Lanka Credit will offset losses from the drop in Lanka Credit's long position.| Singhe Hospitals vs. Asiri Surgical Hospital | Singhe Hospitals vs. CEYLON HOSPITALS PLC | Singhe Hospitals vs. Ceylon Hospitals PLC | Singhe Hospitals vs. Chemanex PLC |
| Lanka Credit vs. Ceylon Guardian Investment | Lanka Credit vs. DFCC Bank PLC | Lanka Credit vs. Renuka Agri Foods | Lanka Credit vs. Distilleries Company of |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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