Correlation Between Hatton National and Peoples Insurance
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By analyzing existing cross correlation between Hatton National Bank and Peoples Insurance PLC, you can compare the effects of market volatilities on Hatton National 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 Hatton National with a short position of Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hatton National and Peoples Insurance.
Diversification Opportunities for Hatton National and Peoples Insurance
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hatton and Peoples is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Hatton National Bank 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 Hatton National 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 Hatton National Bank 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 Hatton National i.e., Hatton National and Peoples Insurance go up and down completely randomly.
Pair Corralation between Hatton National and Peoples Insurance
Assuming the 90 days trading horizon Hatton National Bank is expected to generate 0.74 times more return on investment than Peoples Insurance. However, Hatton National Bank is 1.36 times less risky than Peoples Insurance. It trades about 0.26 of its potential returns per unit of risk. Peoples Insurance PLC is currently generating about 0.17 per unit of risk. If you would invest 32,025 in Hatton National Bank on November 4, 2024 and sell it today you would earn a total of 3,200 from holding Hatton National Bank or generate 9.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hatton National Bank vs. Peoples Insurance PLC
Performance |
| Timeline |
| Hatton National Bank |
| Peoples Insurance PLC |
Hatton National and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hatton National and Peoples Insurance
The main advantage of trading using opposite Hatton National and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hatton National 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.| Hatton National vs. Renuka Agri Foods | Hatton National vs. Asiri Surgical Hospital | Hatton National vs. RENUKA FOODS PLC | Hatton National vs. Convenience Foods PLC |
| Peoples Insurance vs. Janashakthi Insurance | Peoples Insurance vs. Renuka Agri Foods | Peoples Insurance vs. Citrus Leisure PLC | Peoples Insurance vs. Softlogic Life Insurance |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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