Correlation Between Singhe Hospitals and Sigiriya Village
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By analyzing existing cross correlation between Singhe Hospitals and Sigiriya Village Hotels, you can compare the effects of market volatilities on Singhe Hospitals and Sigiriya Village 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 Sigiriya Village. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singhe Hospitals and Sigiriya Village.
Diversification Opportunities for Singhe Hospitals and Sigiriya Village
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Singhe and Sigiriya is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Singhe Hospitals and Sigiriya Village Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sigiriya Village Hotels 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 Sigiriya Village. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sigiriya Village Hotels has no effect on the direction of Singhe Hospitals i.e., Singhe Hospitals and Sigiriya Village go up and down completely randomly.
Pair Corralation between Singhe Hospitals and Sigiriya Village
Assuming the 90 days trading horizon Singhe Hospitals is expected to generate 1.22 times more return on investment than Sigiriya Village. However, Singhe Hospitals is 1.22 times more volatile than Sigiriya Village Hotels. It trades about 0.01 of its potential returns per unit of risk. Sigiriya Village Hotels is currently generating about -0.02 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 | 91.45% |
| Values | Daily Returns |
Singhe Hospitals vs. Sigiriya Village Hotels
Performance |
| Timeline |
| Singhe Hospitals |
| Sigiriya Village Hotels |
Singhe Hospitals and Sigiriya Village Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singhe Hospitals and Sigiriya Village
The main advantage of trading using opposite Singhe Hospitals and Sigiriya Village positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singhe Hospitals position performs unexpectedly, Sigiriya Village 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 Sigiriya Village will offset losses from the drop in Sigiriya Village'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 |
| Sigiriya Village vs. HNB Finance | Sigiriya Village vs. Prime Lands Residencies | Sigiriya Village vs. Jat Holdings PLC | Sigiriya Village 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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