Correlation Between Commercial Credit and Peoples Insurance
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By analyzing existing cross correlation between Commercial Credit and and Peoples Insurance PLC, you can compare the effects of market volatilities on Commercial Credit 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 Commercial Credit with a short position of Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Commercial Credit and Peoples Insurance.
Diversification Opportunities for Commercial Credit and Peoples Insurance
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Commercial and Peoples is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Commercial Credit and 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 Commercial Credit 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 Commercial Credit and 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 Commercial Credit i.e., Commercial Credit and Peoples Insurance go up and down completely randomly.
Pair Corralation between Commercial Credit and Peoples Insurance
Assuming the 90 days trading horizon Commercial Credit and is expected to generate 1.26 times more return on investment than Peoples Insurance. However, Commercial Credit is 1.26 times more volatile than Peoples Insurance PLC. It trades about 0.07 of its potential returns per unit of risk. Peoples Insurance PLC is currently generating about 0.02 per unit of risk. If you would invest 2,270 in Commercial Credit and on August 31, 2024 and sell it today you would earn a total of 2,240 from holding Commercial Credit and or generate 98.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.34% |
| Values | Daily Returns |
Commercial Credit and vs. Peoples Insurance PLC
Performance |
| Timeline |
| Commercial Credit |
| Peoples Insurance PLC |
Commercial Credit and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Commercial Credit and Peoples Insurance
The main advantage of trading using opposite Commercial Credit and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Commercial Credit 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.| Commercial Credit vs. HNB Finance | Commercial Credit vs. Prime Lands Residencies | Commercial Credit vs. Jat Holdings PLC | Commercial Credit 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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