Correlation Between Lion Brewery and Sri Lanka
Specify exactly 2 symbols:
By analyzing existing cross correlation between Lion Brewery Ceylon and Sri Lanka Telecom, you can compare the effects of market volatilities on Lion Brewery and Sri Lanka 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 Lion Brewery with a short position of Sri Lanka. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion Brewery and Sri Lanka.
Diversification Opportunities for Lion Brewery and Sri Lanka
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lion and Sri is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Lion Brewery Ceylon and Sri Lanka Telecom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sri Lanka Telecom and Lion Brewery 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 Lion Brewery Ceylon are associated (or correlated) with Sri Lanka. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sri Lanka Telecom has no effect on the direction of Lion Brewery i.e., Lion Brewery and Sri Lanka go up and down completely randomly.
Pair Corralation between Lion Brewery and Sri Lanka
Assuming the 90 days trading horizon Lion Brewery Ceylon is expected to generate 2.18 times more return on investment than Sri Lanka. However, Lion Brewery is 2.18 times more volatile than Sri Lanka Telecom. It trades about 0.26 of its potential returns per unit of risk. Sri Lanka Telecom is currently generating about 0.11 per unit of risk. If you would invest 102,550 in Lion Brewery Ceylon on September 25, 2024 and sell it today you would earn a total of 16,400 from holding Lion Brewery Ceylon or generate 15.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 95.45% |
Values | Daily Returns |
Lion Brewery Ceylon vs. Sri Lanka Telecom
Performance |
Timeline |
Lion Brewery Ceylon |
Sri Lanka Telecom |
Lion Brewery and Sri Lanka Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lion Brewery and Sri Lanka
The main advantage of trading using opposite Lion Brewery and Sri Lanka positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion Brewery position performs unexpectedly, Sri Lanka 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 Sri Lanka will offset losses from the drop in Sri Lanka's long position.Lion Brewery vs. HNB Finance | Lion Brewery vs. Prime Lands Residencies | Lion Brewery vs. Jat Holdings PLC | Lion Brewery vs. Lanka Credit and |
Sri Lanka vs. HNB Finance | Sri Lanka vs. Prime Lands Residencies | Sri Lanka vs. Jat Holdings PLC | Sri Lanka vs. Lanka 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |