Correlation Between Lanka Realty and Peoples Insurance
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By analyzing existing cross correlation between Lanka Realty Investments and Peoples Insurance PLC, you can compare the effects of market volatilities on Lanka Realty and Peoples 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 Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lanka Realty and Peoples Insurance.
Diversification Opportunities for Lanka Realty and Peoples Insurance
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lanka and Peoples is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Lanka Realty Investments and Peoples Insurance PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance PLC 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 Peoples Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peoples Insurance PLC has no effect on the direction of Lanka Realty i.e., Lanka Realty and Peoples Insurance go up and down completely randomly.
Pair Corralation between Lanka Realty and Peoples Insurance
Assuming the 90 days trading horizon Lanka Realty Investments is expected to under-perform the Peoples Insurance. In addition to that, Lanka Realty is 1.68 times more volatile than Peoples Insurance PLC. It trades about -0.14 of its total potential returns per unit of risk. Peoples Insurance PLC is currently generating about -0.21 per unit of volatility. If you would invest 2,340 in Peoples Insurance PLC on August 31, 2024 and sell it today you would lose (130.00) from holding Peoples Insurance PLC or give up 5.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lanka Realty Investments vs. Peoples Insurance PLC
Performance |
| Timeline |
| Lanka Realty Investments |
| Peoples Insurance PLC |
Lanka Realty and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lanka Realty and Peoples Insurance
The main advantage of trading using opposite Lanka Realty and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lanka Realty position performs unexpectedly, Peoples 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 Peoples Insurance will offset losses from the drop in Peoples 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 |
| Peoples Insurance vs. HDFC Bank of | Peoples Insurance vs. Nations Trust Bank | Peoples Insurance vs. RENUKA FOODS PLC | Peoples Insurance vs. Carson Cumberbatch 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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