Correlation Between Dolphin Hotels and Ceylinco Insurance
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By analyzing existing cross correlation between Dolphin Hotels PLC and Ceylinco Insurance PLC, you can compare the effects of market volatilities on Dolphin Hotels and Ceylinco Insurance 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 Dolphin Hotels with a short position of Ceylinco Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dolphin Hotels and Ceylinco Insurance.
Diversification Opportunities for Dolphin Hotels and Ceylinco Insurance
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Dolphin and Ceylinco is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Dolphin Hotels PLC and Ceylinco Insurance PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ceylinco Insurance PLC and Dolphin Hotels 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 Dolphin Hotels PLC are associated (or correlated) with Ceylinco Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ceylinco Insurance PLC has no effect on the direction of Dolphin Hotels i.e., Dolphin Hotels and Ceylinco Insurance go up and down completely randomly.
Pair Corralation between Dolphin Hotels and Ceylinco Insurance
Assuming the 90 days trading horizon Dolphin Hotels PLC is expected to generate 1.42 times more return on investment than Ceylinco Insurance. However, Dolphin Hotels is 1.42 times more volatile than Ceylinco Insurance PLC. It trades about 0.04 of its potential returns per unit of risk. Ceylinco Insurance PLC is currently generating about 0.04 per unit of risk. If you would invest 2,950 in Dolphin Hotels PLC on August 31, 2024 and sell it today you would earn a total of 1,260 from holding Dolphin Hotels PLC or generate 42.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 62.69% |
| Values | Daily Returns |
Dolphin Hotels PLC vs. Ceylinco Insurance PLC
Performance |
| Timeline |
| Dolphin Hotels PLC |
| Ceylinco Insurance PLC |
Dolphin Hotels and Ceylinco Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dolphin Hotels and Ceylinco Insurance
The main advantage of trading using opposite Dolphin Hotels and Ceylinco Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dolphin Hotels position performs unexpectedly, Ceylinco Insurance 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 Ceylinco Insurance will offset losses from the drop in Ceylinco Insurance's long position.| Dolphin Hotels vs. Amaya Leisure PLC | Dolphin Hotels vs. Carson Cumberbatch PLC | Dolphin Hotels vs. National Development Bank | Dolphin Hotels vs. RENUKA FOODS PLC |
| Ceylinco Insurance vs. HNB Finance | Ceylinco Insurance vs. Prime Lands Residencies | Ceylinco Insurance vs. Jat Holdings PLC | Ceylinco Insurance 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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