Correlation Between Tangerine Beach and Seylan Bank
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By analyzing existing cross correlation between Tangerine Beach Hotels and Seylan Bank PLC, you can compare the effects of market volatilities on Tangerine Beach and Seylan Bank 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 Seylan Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tangerine Beach and Seylan Bank.
Diversification Opportunities for Tangerine Beach and Seylan Bank
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tangerine and Seylan is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Tangerine Beach Hotels and Seylan Bank PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seylan Bank 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 Seylan Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seylan Bank PLC has no effect on the direction of Tangerine Beach i.e., Tangerine Beach and Seylan Bank go up and down completely randomly.
Pair Corralation between Tangerine Beach and Seylan Bank
Assuming the 90 days trading horizon Tangerine Beach is expected to generate 1.27 times less return on investment than Seylan Bank. In addition to that, Tangerine Beach is 1.37 times more volatile than Seylan Bank PLC. It trades about 0.23 of its total potential returns per unit of risk. Seylan Bank PLC is currently generating about 0.39 per unit of volatility. If you would invest 6,900 in Seylan Bank PLC on October 24, 2024 and sell it today you would earn a total of 1,280 from holding Seylan Bank PLC or generate 18.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tangerine Beach Hotels vs. Seylan Bank PLC
Performance |
| Timeline |
| Tangerine Beach Hotels |
| Seylan Bank PLC |
Tangerine Beach and Seylan Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tangerine Beach and Seylan Bank
The main advantage of trading using opposite Tangerine Beach and Seylan Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tangerine Beach position performs unexpectedly, Seylan Bank 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 Seylan Bank will offset losses from the drop in Seylan Bank's long position.| Tangerine Beach vs. HNB Finance | Tangerine Beach vs. Prime Lands Residencies | Tangerine Beach vs. Jat Holdings PLC | Tangerine Beach vs. E M L |
| Seylan Bank vs. HNB Finance | Seylan Bank vs. Prime Lands Residencies | Seylan Bank vs. Jat Holdings PLC | Seylan Bank 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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