Correlation Between Tal Lanka and Singhe Hospitals
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By analyzing existing cross correlation between Tal Lanka Hotels and Singhe Hospitals, you can compare the effects of market volatilities on Tal Lanka and Singhe Hospitals 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 Tal Lanka with a short position of Singhe Hospitals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tal Lanka and Singhe Hospitals.
Diversification Opportunities for Tal Lanka and Singhe Hospitals
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tal and Singhe is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Tal Lanka Hotels and Singhe Hospitals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singhe Hospitals and Tal Lanka 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 Tal Lanka Hotels are associated (or correlated) with Singhe Hospitals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singhe Hospitals has no effect on the direction of Tal Lanka i.e., Tal Lanka and Singhe Hospitals go up and down completely randomly.
Pair Corralation between Tal Lanka and Singhe Hospitals
Assuming the 90 days trading horizon Tal Lanka Hotels is expected to generate 1.13 times more return on investment than Singhe Hospitals. However, Tal Lanka is 1.13 times more volatile than Singhe Hospitals. It trades about 0.11 of its potential returns per unit of risk. Singhe Hospitals is currently generating about 0.01 per unit of risk. If you would invest 1,780 in Tal Lanka Hotels on September 15, 2024 and sell it today you would earn a total of 320.00 from holding Tal Lanka Hotels or generate 17.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 96.67% |
Values | Daily Returns |
Tal Lanka Hotels vs. Singhe Hospitals
Performance |
Timeline |
Tal Lanka Hotels |
Singhe Hospitals |
Tal Lanka and Singhe Hospitals Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tal Lanka and Singhe Hospitals
The main advantage of trading using opposite Tal Lanka and Singhe Hospitals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tal Lanka position performs unexpectedly, Singhe Hospitals 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 Singhe Hospitals will offset losses from the drop in Singhe Hospitals' long position.Tal Lanka vs. Ceylon Guardian Investment | Tal Lanka vs. Asian Hotels and | Tal Lanka vs. Browns Beach Hotels | Tal Lanka vs. HVA Foods PLC |
Singhe Hospitals vs. Lanka Credit and | Singhe Hospitals vs. VIDULLANKA PLC | Singhe Hospitals vs. Carson Cumberbatch PLC | Singhe Hospitals vs. Peoples Insurance PLC |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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