Correlation Between Tangerine Beach and CEYLINCO INSURANCE
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By analyzing existing cross correlation between Tangerine Beach Hotels and CEYLINCO INSURANCE PLC, you can compare the effects of market volatilities on Tangerine Beach 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 Tangerine Beach with a short position of CEYLINCO INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tangerine Beach and CEYLINCO INSURANCE.
Diversification Opportunities for Tangerine Beach and CEYLINCO INSURANCE
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tangerine and CEYLINCO is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Tangerine Beach Hotels 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 Tangerine Beach 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 Tangerine Beach Hotels 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 Tangerine Beach i.e., Tangerine Beach and CEYLINCO INSURANCE go up and down completely randomly.
Pair Corralation between Tangerine Beach and CEYLINCO INSURANCE
Assuming the 90 days trading horizon Tangerine Beach Hotels is expected to generate 2.66 times more return on investment than CEYLINCO INSURANCE. However, Tangerine Beach is 2.66 times more volatile than CEYLINCO INSURANCE PLC. It trades about 0.02 of its potential returns per unit of risk. CEYLINCO INSURANCE PLC is currently generating about 0.01 per unit of risk. If you would invest 5,910 in Tangerine Beach Hotels on August 27, 2024 and sell it today you would earn a total of 490.00 from holding Tangerine Beach Hotels or generate 8.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.07% |
| Values | Daily Returns |
Tangerine Beach Hotels vs. CEYLINCO INSURANCE PLC
Performance |
| Timeline |
| Tangerine Beach Hotels |
| CEYLINCO INSURANCE PLC |
Tangerine Beach and CEYLINCO INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tangerine Beach and CEYLINCO INSURANCE
The main advantage of trading using opposite Tangerine Beach and CEYLINCO INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tangerine Beach 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.| Tangerine Beach vs. BROWNS INVESTMENTS PLC | Tangerine Beach vs. Sampath Bank PLC | Tangerine Beach vs. RENUKA FOODS PLC | Tangerine Beach vs. SEYLAN BANK PLC |
| CEYLINCO INSURANCE vs. Sanasa Development Bank | CEYLINCO INSURANCE vs. Union Chemicals Lanka | CEYLINCO INSURANCE vs. Union Bank | CEYLINCO INSURANCE vs. Ceylon Guardian Investment |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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