Correlation Between Jat Holdings and Arpico Insurance
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By analyzing existing cross correlation between Jat Holdings PLC and Arpico Insurance, you can compare the effects of market volatilities on Jat Holdings 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 Jat Holdings with a short position of Arpico Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jat Holdings and Arpico Insurance.
Diversification Opportunities for Jat Holdings and Arpico Insurance
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jat and Arpico is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Jat Holdings PLC and Arpico Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arpico Insurance and Jat Holdings 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 Jat Holdings 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 Jat Holdings i.e., Jat Holdings and Arpico Insurance go up and down completely randomly.
Pair Corralation between Jat Holdings and Arpico Insurance
Assuming the 90 days trading horizon Jat Holdings PLC is expected to generate 0.59 times more return on investment than Arpico Insurance. However, Jat Holdings PLC is 1.69 times less risky than Arpico Insurance. It trades about 0.19 of its potential returns per unit of risk. Arpico Insurance is currently generating about -0.05 per unit of risk. If you would invest 2,600 in Jat Holdings PLC on October 24, 2024 and sell it today you would earn a total of 170.00 from holding Jat Holdings PLC or generate 6.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jat Holdings PLC vs. Arpico Insurance
Performance |
| Timeline |
| Jat Holdings PLC |
| Arpico Insurance |
Jat Holdings and Arpico Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jat Holdings and Arpico Insurance
The main advantage of trading using opposite Jat Holdings and Arpico Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jat Holdings 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.| Jat Holdings vs. Carson Cumberbatch PLC | Jat Holdings vs. Seylan Bank PLC | Jat Holdings vs. Sanasa Development Bank | Jat Holdings vs. ACL Plastics PLC |
| Arpico Insurance vs. HNB Finance | Arpico Insurance vs. Prime Lands Residencies | Arpico Insurance vs. Jat Holdings PLC | Arpico Insurance vs. E M L |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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