Correlation Between Lanka Realty and Arpico Insurance
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By analyzing existing cross correlation between Lanka Realty Investments and Arpico Insurance, you can compare the effects of market volatilities on Lanka Realty and Arpico 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 Lanka Realty with a short position of Arpico Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lanka Realty and Arpico Insurance.
Diversification Opportunities for Lanka Realty and Arpico Insurance
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lanka and Arpico is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Lanka Realty Investments and Arpico Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arpico Insurance and Lanka Realty 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 Lanka Realty Investments are associated (or correlated) with Arpico Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arpico Insurance has no effect on the direction of Lanka Realty i.e., Lanka Realty and Arpico Insurance go up and down completely randomly.
Pair Corralation between Lanka Realty and Arpico Insurance
Assuming the 90 days trading horizon Lanka Realty Investments is expected to under-perform the Arpico Insurance. In addition to that, Lanka Realty is 1.0 times more volatile than Arpico Insurance. It trades about -0.05 of its total potential returns per unit of risk. Arpico Insurance is currently generating about 0.09 per unit of volatility. If you would invest 2,100 in Arpico Insurance on August 27, 2024 and sell it today you would earn a total of 130.00 from holding Arpico Insurance or generate 6.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 72.5% |
| Values | Daily Returns |
Lanka Realty Investments vs. Arpico Insurance
Performance |
| Timeline |
| Lanka Realty Investments |
| Arpico Insurance |
Lanka Realty and Arpico Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lanka Realty and Arpico Insurance
The main advantage of trading using opposite Lanka Realty and Arpico Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lanka Realty position performs unexpectedly, Arpico 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 Arpico Insurance will offset losses from the drop in Arpico Insurance's long position.| Lanka Realty vs. PEOPLES LEASING FINANCE | Lanka Realty vs. Janashakthi Insurance | Lanka Realty vs. Ceylinco Insurance PLC | Lanka Realty vs. National Development Bank |
| Arpico Insurance vs. Nuwara Eliya Hotels | Arpico Insurance vs. Hotel Sigiriya PLC | Arpico Insurance vs. Ceylon Tobacco | Arpico Insurance vs. Lighthouse Hotel PLC |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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