Correlation Between Keells Food and CEYLINCO INSURANCE
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By analyzing existing cross correlation between Keells Food Products and CEYLINCO INSURANCE PLC, you can compare the effects of market volatilities on Keells Food 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 Keells Food with a short position of CEYLINCO INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keells Food and CEYLINCO INSURANCE.
Diversification Opportunities for Keells Food and CEYLINCO INSURANCE
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Keells and CEYLINCO is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Keells Food Products 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 Keells Food 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 Keells Food Products 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 Keells Food i.e., Keells Food and CEYLINCO INSURANCE go up and down completely randomly.
Pair Corralation between Keells Food and CEYLINCO INSURANCE
Assuming the 90 days trading horizon Keells Food is expected to generate 3.72 times less return on investment than CEYLINCO INSURANCE. But when comparing it to its historical volatility, Keells Food Products is 1.36 times less risky than CEYLINCO INSURANCE. It trades about 0.07 of its potential returns per unit of risk. CEYLINCO INSURANCE PLC is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 90,000 in CEYLINCO INSURANCE PLC on October 7, 2024 and sell it today you would earn a total of 50,000 from holding CEYLINCO INSURANCE PLC or generate 55.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 81.25% |
Values | Daily Returns |
Keells Food Products vs. CEYLINCO INSURANCE PLC
Performance |
Timeline |
Keells Food Products |
CEYLINCO INSURANCE PLC |
Keells Food and CEYLINCO INSURANCE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Keells Food and CEYLINCO INSURANCE
The main advantage of trading using opposite Keells Food and CEYLINCO INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keells Food 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.Keells Food vs. Janashakthi Insurance | Keells Food vs. Arpico Insurance | Keells Food vs. Ceylon Cold Stores | Keells Food vs. Hotel Sigiriya PLC |
CEYLINCO INSURANCE vs. Sanasa Development Bank | CEYLINCO INSURANCE vs. PEOPLES LEASING FINANCE | CEYLINCO INSURANCE vs. Janashakthi Insurance | CEYLINCO INSURANCE vs. Ceylon Tobacco |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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