Correlation Between Prime Lands and CEYLINCO INSURANCE
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By analyzing existing cross correlation between Prime Lands Residencies and CEYLINCO INSURANCE PLC, you can compare the effects of market volatilities on Prime Lands 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 Prime Lands with a short position of CEYLINCO INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prime Lands and CEYLINCO INSURANCE.
Diversification Opportunities for Prime Lands and CEYLINCO INSURANCE
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Prime and CEYLINCO is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Prime Lands Residencies 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 Prime Lands 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 Prime Lands Residencies 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 Prime Lands i.e., Prime Lands and CEYLINCO INSURANCE go up and down completely randomly.
Pair Corralation between Prime Lands and CEYLINCO INSURANCE
Assuming the 90 days trading horizon Prime Lands is expected to generate 1.32 times less return on investment than CEYLINCO INSURANCE. But when comparing it to its historical volatility, Prime Lands Residencies is 1.54 times less risky than CEYLINCO INSURANCE. It trades about 0.36 of its potential returns per unit of risk. CEYLINCO INSURANCE PLC is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 105,000 in CEYLINCO INSURANCE PLC on September 25, 2024 and sell it today you would earn a total of 30,175 from holding CEYLINCO INSURANCE PLC or generate 28.74% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.24% |
Values | Daily Returns |
Prime Lands Residencies vs. CEYLINCO INSURANCE PLC
Performance |
Timeline |
Prime Lands Residencies |
CEYLINCO INSURANCE PLC |
Prime Lands and CEYLINCO INSURANCE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Prime Lands and CEYLINCO INSURANCE
The main advantage of trading using opposite Prime Lands and CEYLINCO INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prime Lands 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.Prime Lands vs. HNB Finance | Prime Lands vs. Jat Holdings PLC | Prime Lands vs. Lanka Credit and | Prime Lands vs. VIDULLANKA PLC |
CEYLINCO INSURANCE vs. HNB Finance | CEYLINCO INSURANCE vs. Prime Lands Residencies | CEYLINCO INSURANCE vs. Jat Holdings PLC | CEYLINCO INSURANCE 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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