Correlation Between Ceylinco Insurance and Arpico Insurance
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By analyzing existing cross correlation between Ceylinco Insurance PLC and Arpico Insurance, you can compare the effects of market volatilities on Ceylinco Insurance 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 Ceylinco Insurance with a short position of Arpico Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceylinco Insurance and Arpico Insurance.
Diversification Opportunities for Ceylinco Insurance and Arpico Insurance
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ceylinco and Arpico is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Ceylinco Insurance PLC and Arpico Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arpico Insurance and Ceylinco 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 Ceylinco Insurance PLC 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 Ceylinco Insurance i.e., Ceylinco Insurance and Arpico Insurance go up and down completely randomly.
Pair Corralation between Ceylinco Insurance and Arpico Insurance
Assuming the 90 days trading horizon Ceylinco Insurance is expected to generate 1.79 times less return on investment than Arpico Insurance. But when comparing it to its historical volatility, Ceylinco Insurance PLC is 1.94 times less risky than Arpico Insurance. It trades about 0.04 of its potential returns per unit of risk. Arpico Insurance is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,810 in Arpico Insurance on September 3, 2024 and sell it today you would earn a total of 480.00 from holding Arpico Insurance or generate 26.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.09% |
| Values | Daily Returns |
Ceylinco Insurance PLC vs. Arpico Insurance
Performance |
| Timeline |
| Ceylinco Insurance PLC |
| Arpico Insurance |
Ceylinco Insurance and Arpico Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceylinco Insurance and Arpico Insurance
The main advantage of trading using opposite Ceylinco Insurance and Arpico Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceylinco Insurance 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.| Ceylinco Insurance vs. Lanka Credit and | Ceylinco Insurance vs. VIDULLANKA PLC | Ceylinco Insurance vs. Carson Cumberbatch PLC | Ceylinco Insurance vs. Peoples Insurance PLC |
| Arpico Insurance vs. Lanka Credit and | Arpico Insurance vs. VIDULLANKA PLC | Arpico Insurance vs. Carson Cumberbatch PLC | Arpico Insurance vs. Peoples Insurance 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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