Correlation Between Singhe Hospitals and Lion Brewery
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By analyzing existing cross correlation between Singhe Hospitals and Lion Brewery Ceylon, you can compare the effects of market volatilities on Singhe Hospitals and Lion Brewery 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 Lion Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singhe Hospitals and Lion Brewery.
Diversification Opportunities for Singhe Hospitals and Lion Brewery
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Singhe and Lion is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Singhe Hospitals and Lion Brewery Ceylon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion Brewery Ceylon 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 Lion Brewery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion Brewery Ceylon has no effect on the direction of Singhe Hospitals i.e., Singhe Hospitals and Lion Brewery go up and down completely randomly.
Pair Corralation between Singhe Hospitals and Lion Brewery
Assuming the 90 days trading horizon Singhe Hospitals is expected to generate 1.76 times more return on investment than Lion Brewery. However, Singhe Hospitals is 1.76 times more volatile than Lion Brewery Ceylon. It trades about -0.06 of its potential returns per unit of risk. Lion Brewery Ceylon is currently generating about -0.13 per unit of risk. If you would invest 250.00 in Singhe Hospitals on August 31, 2024 and sell it today you would lose (10.00) from holding Singhe Hospitals or give up 4.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singhe Hospitals vs. Lion Brewery Ceylon
Performance |
| Timeline |
| Singhe Hospitals |
| Lion Brewery Ceylon |
Singhe Hospitals and Lion Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singhe Hospitals and Lion Brewery
The main advantage of trading using opposite Singhe Hospitals and Lion Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singhe Hospitals position performs unexpectedly, Lion Brewery 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 Lion Brewery will offset losses from the drop in Lion Brewery'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 |
| Lion Brewery vs. HNB Finance | Lion Brewery vs. Prime Lands Residencies | Lion Brewery vs. Jat Holdings PLC | Lion Brewery 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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