Correlation Between Ceylon Guardian and Peoples Insurance
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By analyzing existing cross correlation between Ceylon Guardian Investment and Peoples Insurance PLC, you can compare the effects of market volatilities on Ceylon Guardian 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 Ceylon Guardian with a short position of Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceylon Guardian and Peoples Insurance.
Diversification Opportunities for Ceylon Guardian and Peoples Insurance
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ceylon and Peoples is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Ceylon Guardian Investment 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 Ceylon Guardian 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 Ceylon Guardian Investment 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 Ceylon Guardian i.e., Ceylon Guardian and Peoples Insurance go up and down completely randomly.
Pair Corralation between Ceylon Guardian and Peoples Insurance
Assuming the 90 days trading horizon Ceylon Guardian Investment is expected to generate 1.37 times more return on investment than Peoples Insurance. However, Ceylon Guardian is 1.37 times more volatile than Peoples Insurance PLC. It trades about -0.09 of its potential returns per unit of risk. Peoples Insurance PLC is currently generating about -0.21 per unit of risk. If you would invest 10,575 in Ceylon Guardian Investment on August 31, 2024 and sell it today you would lose (375.00) from holding Ceylon Guardian Investment or give up 3.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ceylon Guardian Investment vs. Peoples Insurance PLC
Performance |
| Timeline |
| Ceylon Guardian Inve |
| Peoples Insurance PLC |
Ceylon Guardian and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceylon Guardian and Peoples Insurance
The main advantage of trading using opposite Ceylon Guardian and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceylon Guardian 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.| Ceylon Guardian vs. HNB Finance | Ceylon Guardian vs. Prime Lands Residencies | Ceylon Guardian vs. Jat Holdings PLC | Ceylon Guardian 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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