Correlation Between Aitken Spence and Janashakthi Insurance
Specify exactly 2 symbols:
By analyzing existing cross correlation between Aitken Spence Hotel and Janashakthi Insurance, you can compare the effects of market volatilities on Aitken Spence and Janashakthi 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 Aitken Spence with a short position of Janashakthi Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aitken Spence and Janashakthi Insurance.
Diversification Opportunities for Aitken Spence and Janashakthi Insurance
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aitken and Janashakthi is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Aitken Spence Hotel and Janashakthi Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janashakthi Insurance and Aitken Spence 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 Aitken Spence Hotel are associated (or correlated) with Janashakthi Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janashakthi Insurance has no effect on the direction of Aitken Spence i.e., Aitken Spence and Janashakthi Insurance go up and down completely randomly.
Pair Corralation between Aitken Spence and Janashakthi Insurance
Assuming the 90 days trading horizon Aitken Spence Hotel is expected to generate 1.2 times more return on investment than Janashakthi Insurance. However, Aitken Spence is 1.2 times more volatile than Janashakthi Insurance. It trades about 0.39 of its potential returns per unit of risk. Janashakthi Insurance is currently generating about 0.1 per unit of risk. If you would invest 6,000 in Aitken Spence Hotel on September 4, 2024 and sell it today you would earn a total of 1,380 from holding Aitken Spence Hotel or generate 23.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aitken Spence Hotel vs. Janashakthi Insurance
Performance |
| Timeline |
| Aitken Spence Hotel |
| Janashakthi Insurance |
Aitken Spence and Janashakthi Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aitken Spence and Janashakthi Insurance
The main advantage of trading using opposite Aitken Spence and Janashakthi Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aitken Spence position performs unexpectedly, Janashakthi 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 Janashakthi Insurance will offset losses from the drop in Janashakthi Insurance's long position.| Aitken Spence vs. SERENDIB HOTELS PLC | Aitken Spence vs. Convenience Foods PLC | Aitken Spence vs. BROWNS INVESTMENTS PLC | Aitken Spence vs. Palm Garden Hotels |
| Janashakthi Insurance vs. Browns Beach Hotels | Janashakthi Insurance vs. Lion Brewery Ceylon | Janashakthi Insurance vs. Aitken Spence Hotel | Janashakthi Insurance vs. Lanka Milk Foods |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| CEOs Directory Screen CEOs from public companies around the world |