Correlation Between Arpico Insurance and Keells Food
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By analyzing existing cross correlation between Arpico Insurance and Keells Food Products, you can compare the effects of market volatilities on Arpico Insurance and Keells Food 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 Keells Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arpico Insurance and Keells Food.
Diversification Opportunities for Arpico Insurance and Keells Food
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Arpico and Keells is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Arpico Insurance and Keells Food Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keells Food Products 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 Keells Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keells Food Products has no effect on the direction of Arpico Insurance i.e., Arpico Insurance and Keells Food go up and down completely randomly.
Pair Corralation between Arpico Insurance and Keells Food
Assuming the 90 days trading horizon Arpico Insurance is expected to generate 1.67 times more return on investment than Keells Food. However, Arpico Insurance is 1.67 times more volatile than Keells Food Products. It trades about 0.03 of its potential returns per unit of risk. Keells Food Products is currently generating about 0.02 per unit of risk. If you would invest 1,900 in Arpico Insurance on August 27, 2024 and sell it today you would earn a total of 330.00 from holding Arpico Insurance or generate 17.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 87.32% |
| Values | Daily Returns |
Arpico Insurance vs. Keells Food Products
Performance |
| Timeline |
| Arpico Insurance |
| Keells Food Products |
Arpico Insurance and Keells Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arpico Insurance and Keells Food
The main advantage of trading using opposite Arpico Insurance and Keells Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arpico Insurance position performs unexpectedly, Keells Food 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 Keells Food will offset losses from the drop in Keells Food'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 |
| Keells Food vs. Kandy Hotels | Keells Food vs. RENUKA FOODS PLC | Keells Food vs. Lanka Realty Investments | Keells Food vs. Nuwara Eliya 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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