Correlation Between Lanka Realty and Janashakthi Insurance
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By analyzing existing cross correlation between Lanka Realty Investments and Janashakthi Insurance, you can compare the effects of market volatilities on Lanka Realty and Janashakthi 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 Janashakthi Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lanka Realty and Janashakthi Insurance.
Diversification Opportunities for Lanka Realty and Janashakthi Insurance
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lanka and Janashakthi is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Lanka Realty Investments and Janashakthi Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janashakthi 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 Janashakthi Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janashakthi Insurance has no effect on the direction of Lanka Realty i.e., Lanka Realty and Janashakthi Insurance go up and down completely randomly.
Pair Corralation between Lanka Realty and Janashakthi Insurance
Assuming the 90 days trading horizon Lanka Realty Investments is expected to under-perform the Janashakthi Insurance. But the stock apears to be less risky and, when comparing its historical volatility, Lanka Realty Investments is 1.03 times less risky than Janashakthi Insurance. The stock trades about -0.14 of its potential returns per unit of risk. The Janashakthi Insurance is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 4,460 in Janashakthi Insurance on August 31, 2024 and sell it today you would earn a total of 50.00 from holding Janashakthi Insurance or generate 1.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lanka Realty Investments vs. Janashakthi Insurance
Performance |
| Timeline |
| Lanka Realty Investments |
| Janashakthi Insurance |
Lanka Realty and Janashakthi Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lanka Realty and Janashakthi Insurance
The main advantage of trading using opposite Lanka Realty and Janashakthi Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lanka Realty position performs unexpectedly, Janashakthi 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 Janashakthi Insurance will offset losses from the drop in Janashakthi Insurance's long position.| Lanka Realty vs. HNB Finance | Lanka Realty vs. Prime Lands Residencies | Lanka Realty vs. Jat Holdings PLC | Lanka Realty vs. E M L |
| Janashakthi Insurance vs. HNB Finance | Janashakthi Insurance vs. Prime Lands Residencies | Janashakthi Insurance vs. Jat Holdings PLC | Janashakthi Insurance 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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