Correlation Between Singhe Hospitals and Lanka Ceramic
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By analyzing existing cross correlation between Singhe Hospitals and Lanka Ceramic PLC, you can compare the effects of market volatilities on Singhe Hospitals and Lanka Ceramic 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 Lanka Ceramic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singhe Hospitals and Lanka Ceramic.
Diversification Opportunities for Singhe Hospitals and Lanka Ceramic
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Singhe and Lanka is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Singhe Hospitals and Lanka Ceramic PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lanka Ceramic PLC 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 Lanka Ceramic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lanka Ceramic PLC has no effect on the direction of Singhe Hospitals i.e., Singhe Hospitals and Lanka Ceramic go up and down completely randomly.
Pair Corralation between Singhe Hospitals and Lanka Ceramic
Assuming the 90 days trading horizon Singhe Hospitals is expected to generate 1.49 times less return on investment than Lanka Ceramic. In addition to that, Singhe Hospitals is 1.11 times more volatile than Lanka Ceramic PLC. It trades about 0.09 of its total potential returns per unit of risk. Lanka Ceramic PLC is currently generating about 0.15 per unit of volatility. If you would invest 10,650 in Lanka Ceramic PLC on October 12, 2024 and sell it today you would earn a total of 2,900 from holding Lanka Ceramic PLC or generate 27.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 94.92% |
Values | Daily Returns |
Singhe Hospitals vs. Lanka Ceramic PLC
Performance |
Timeline |
Singhe Hospitals |
Lanka Ceramic PLC |
Singhe Hospitals and Lanka Ceramic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Singhe Hospitals and Lanka Ceramic
The main advantage of trading using opposite Singhe Hospitals and Lanka Ceramic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singhe Hospitals position performs unexpectedly, Lanka Ceramic 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 Lanka Ceramic will offset losses from the drop in Lanka Ceramic's long position.Singhe Hospitals vs. Peoples Insurance PLC | Singhe Hospitals vs. HATTON NATIONAL BANK | Singhe Hospitals vs. Pegasus Hotels of | Singhe Hospitals vs. COMMERCIAL BANK OF |
Lanka Ceramic vs. Singhe Hospitals | Lanka Ceramic vs. Union Chemicals Lanka | Lanka Ceramic vs. Union Bank | Lanka Ceramic vs. Commercial Credit and |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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