Correlation Between Softlogic Life and BROWNS INVESTMENTS
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By analyzing existing cross correlation between Softlogic Life Insurance and BROWNS INVESTMENTS PLC, you can compare the effects of market volatilities on Softlogic Life and BROWNS INVESTMENTS 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 Softlogic Life with a short position of BROWNS INVESTMENTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Softlogic Life and BROWNS INVESTMENTS.
Diversification Opportunities for Softlogic Life and BROWNS INVESTMENTS
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Softlogic and BROWNS is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Softlogic Life Insurance and BROWNS INVESTMENTS PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BROWNS INVESTMENTS PLC and Softlogic Life 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 Softlogic Life Insurance are associated (or correlated) with BROWNS INVESTMENTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BROWNS INVESTMENTS PLC has no effect on the direction of Softlogic Life i.e., Softlogic Life and BROWNS INVESTMENTS go up and down completely randomly.
Pair Corralation between Softlogic Life and BROWNS INVESTMENTS
Assuming the 90 days trading horizon Softlogic Life is expected to generate 2.25 times less return on investment than BROWNS INVESTMENTS. But when comparing it to its historical volatility, Softlogic Life Insurance is 1.26 times less risky than BROWNS INVESTMENTS. It trades about 0.1 of its potential returns per unit of risk. BROWNS INVESTMENTS PLC is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 480.00 in BROWNS INVESTMENTS PLC on August 31, 2024 and sell it today you would earn a total of 110.00 from holding BROWNS INVESTMENTS PLC or generate 22.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Softlogic Life Insurance vs. BROWNS INVESTMENTS PLC
Performance |
| Timeline |
| Softlogic Life Insurance |
| BROWNS INVESTMENTS PLC |
Softlogic Life and BROWNS INVESTMENTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Softlogic Life and BROWNS INVESTMENTS
The main advantage of trading using opposite Softlogic Life and BROWNS INVESTMENTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Softlogic Life position performs unexpectedly, BROWNS INVESTMENTS 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 BROWNS INVESTMENTS will offset losses from the drop in BROWNS INVESTMENTS's long position.| Softlogic Life vs. Renuka Agri Foods | Softlogic Life vs. Ceylon Tobacco | Softlogic Life vs. BROWNS INVESTMENTS PLC | Softlogic Life vs. Lanka Milk Foods |
| BROWNS INVESTMENTS vs. Aitken Spence Hotel | BROWNS INVESTMENTS vs. Lanka Realty Investments | BROWNS INVESTMENTS vs. Keells Food Products | BROWNS INVESTMENTS vs. Ceylon Guardian Investment |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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