Correlation Between Arpico Insurance and ACL Cables
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By analyzing existing cross correlation between Arpico Insurance and ACL Cables PLC, you can compare the effects of market volatilities on Arpico Insurance and ACL Cables 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 Arpico Insurance with a short position of ACL Cables. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arpico Insurance and ACL Cables.
Diversification Opportunities for Arpico Insurance and ACL Cables
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Arpico and ACL is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Arpico Insurance and ACL Cables PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACL Cables PLC and Arpico Insurance 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 Arpico Insurance are associated (or correlated) with ACL Cables. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACL Cables PLC has no effect on the direction of Arpico Insurance i.e., Arpico Insurance and ACL Cables go up and down completely randomly.
Pair Corralation between Arpico Insurance and ACL Cables
Assuming the 90 days trading horizon Arpico Insurance is expected to generate 4.04 times less return on investment than ACL Cables. In addition to that, Arpico Insurance is 2.78 times more volatile than ACL Cables PLC. It trades about 0.01 of its total potential returns per unit of risk. ACL Cables PLC is currently generating about 0.1 per unit of volatility. If you would invest 7,110 in ACL Cables PLC on September 3, 2024 and sell it today you would earn a total of 2,300 from holding ACL Cables PLC or generate 32.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 61.54% |
| Values | Daily Returns |
Arpico Insurance vs. ACL Cables PLC
Performance |
| Timeline |
| Arpico Insurance |
| ACL Cables PLC |
Arpico Insurance and ACL Cables Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arpico Insurance and ACL Cables
The main advantage of trading using opposite Arpico Insurance and ACL Cables positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arpico Insurance position performs unexpectedly, ACL Cables 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 ACL Cables will offset losses from the drop in ACL Cables' long position.| Arpico Insurance vs. Lanka Credit and | Arpico Insurance vs. VIDULLANKA PLC | Arpico Insurance vs. Carson Cumberbatch PLC | Arpico Insurance vs. Peoples Insurance PLC |
| ACL Cables vs. Sigiriya Village Hotels | ACL Cables vs. Singhe Hospitals | ACL Cables vs. Kandy Hotels | ACL Cables vs. Ceylon Hotels |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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