Correlation Between Arpico Insurance and Aitken Spence
Specify exactly 2 symbols:
By analyzing existing cross correlation between Arpico Insurance and Aitken Spence Hotel, you can compare the effects of market volatilities on Arpico Insurance and Aitken Spence 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 Aitken Spence. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arpico Insurance and Aitken Spence.
Diversification Opportunities for Arpico Insurance and Aitken Spence
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Arpico and Aitken is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Arpico Insurance and Aitken Spence Hotel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aitken Spence Hotel 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 Aitken Spence. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aitken Spence Hotel has no effect on the direction of Arpico Insurance i.e., Arpico Insurance and Aitken Spence go up and down completely randomly.
Pair Corralation between Arpico Insurance and Aitken Spence
Assuming the 90 days trading horizon Arpico Insurance is expected to under-perform the Aitken Spence. In addition to that, Arpico Insurance is 1.45 times more volatile than Aitken Spence Hotel. It trades about -0.38 of its total potential returns per unit of risk. Aitken Spence Hotel is currently generating about 0.33 per unit of volatility. If you would invest 5,990 in Aitken Spence Hotel on August 28, 2024 and sell it today you would earn a total of 580.00 from holding Aitken Spence Hotel or generate 9.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 89.47% |
| Values | Daily Returns |
Arpico Insurance vs. Aitken Spence Hotel
Performance |
| Timeline |
| Arpico Insurance |
| Aitken Spence Hotel |
Arpico Insurance and Aitken Spence Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arpico Insurance and Aitken Spence
The main advantage of trading using opposite Arpico Insurance and Aitken Spence positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arpico Insurance position performs unexpectedly, Aitken Spence 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 Aitken Spence will offset losses from the drop in Aitken Spence's long position.| Arpico Insurance vs. Nuwara Eliya Hotels | Arpico Insurance vs. Hotel Sigiriya PLC | Arpico Insurance vs. Ceylon Tobacco | Arpico Insurance vs. Lighthouse Hotel PLC |
| Aitken Spence vs. Browns Beach Hotels | Aitken Spence vs. Trans Asia Hotels | Aitken Spence vs. Kandy Hotels | Aitken Spence vs. Lanka Realty Investments |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |