Correlation Between Singhe Hospitals and Lanka Milk
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By analyzing existing cross correlation between Singhe Hospitals and Lanka Milk Foods, you can compare the effects of market volatilities on Singhe Hospitals and Lanka Milk 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 Milk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singhe Hospitals and Lanka Milk.
Diversification Opportunities for Singhe Hospitals and Lanka Milk
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Singhe and Lanka is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Singhe Hospitals and Lanka Milk Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lanka Milk Foods 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 Milk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lanka Milk Foods has no effect on the direction of Singhe Hospitals i.e., Singhe Hospitals and Lanka Milk go up and down completely randomly.
Pair Corralation between Singhe Hospitals and Lanka Milk
Assuming the 90 days trading horizon Singhe Hospitals is expected to generate 8.24 times less return on investment than Lanka Milk. In addition to that, Singhe Hospitals is 1.48 times more volatile than Lanka Milk Foods. It trades about 0.01 of its total potential returns per unit of risk. Lanka Milk Foods is currently generating about 0.15 per unit of volatility. If you would invest 3,070 in Lanka Milk Foods on August 30, 2024 and sell it today you would earn a total of 160.00 from holding Lanka Milk Foods or generate 5.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singhe Hospitals vs. Lanka Milk Foods
Performance |
| Timeline |
| Singhe Hospitals |
| Lanka Milk Foods |
Singhe Hospitals and Lanka Milk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singhe Hospitals and Lanka Milk
The main advantage of trading using opposite Singhe Hospitals and Lanka Milk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singhe Hospitals position performs unexpectedly, Lanka Milk 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 Milk will offset losses from the drop in Lanka Milk's long position.| Singhe Hospitals vs. EX PACK RUGATED CARTONS | Singhe Hospitals vs. Carson Cumberbatch PLC | Singhe Hospitals vs. PANASIAN POWER PLC | Singhe Hospitals vs. Distilleries Company of |
| Lanka Milk vs. Browns Beach Hotels | Lanka Milk vs. Ceylon Hotels | Lanka Milk vs. Hotel Sigiriya PLC | Lanka Milk vs. Tal Lanka Hotels |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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