Correlation Between Arpico Insurance and Sigiriya Village
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By analyzing existing cross correlation between Arpico Insurance and Sigiriya Village Hotels, you can compare the effects of market volatilities on Arpico Insurance and Sigiriya Village 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 Sigiriya Village. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arpico Insurance and Sigiriya Village.
Diversification Opportunities for Arpico Insurance and Sigiriya Village
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Arpico and Sigiriya is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Arpico Insurance and Sigiriya Village Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sigiriya Village Hotels 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 Sigiriya Village. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sigiriya Village Hotels has no effect on the direction of Arpico Insurance i.e., Arpico Insurance and Sigiriya Village go up and down completely randomly.
Pair Corralation between Arpico Insurance and Sigiriya Village
Assuming the 90 days trading horizon Arpico Insurance is expected to under-perform the Sigiriya Village. But the stock apears to be less risky and, when comparing its historical volatility, Arpico Insurance is 1.4 times less risky than Sigiriya Village. The stock trades about -0.32 of its potential returns per unit of risk. The Sigiriya Village Hotels is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 3,700 in Sigiriya Village Hotels on August 31, 2024 and sell it today you would earn a total of 880.00 from holding Sigiriya Village Hotels or generate 23.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 85.0% |
| Values | Daily Returns |
Arpico Insurance vs. Sigiriya Village Hotels
Performance |
| Timeline |
| Arpico Insurance |
| Sigiriya Village Hotels |
Arpico Insurance and Sigiriya Village Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arpico Insurance and Sigiriya Village
The main advantage of trading using opposite Arpico Insurance and Sigiriya Village positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arpico Insurance position performs unexpectedly, Sigiriya Village 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 Sigiriya Village will offset losses from the drop in Sigiriya Village's long position.| Arpico Insurance vs. HNB Finance | Arpico Insurance vs. Prime Lands Residencies | Arpico Insurance vs. Jat Holdings PLC | Arpico Insurance vs. E M L |
| Sigiriya Village vs. HNB Finance | Sigiriya Village vs. Prime Lands Residencies | Sigiriya Village vs. Jat Holdings PLC | Sigiriya Village vs. E M L |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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