Correlation Between Janashakthi Insurance and Amana Bank
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By analyzing existing cross correlation between Janashakthi Insurance and Amana Bank, you can compare the effects of market volatilities on Janashakthi Insurance and Amana Bank 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 Janashakthi Insurance with a short position of Amana Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janashakthi Insurance and Amana Bank.
Diversification Opportunities for Janashakthi Insurance and Amana Bank
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Janashakthi and Amana is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Janashakthi Insurance and Amana Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amana Bank and Janashakthi 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 Janashakthi Insurance are associated (or correlated) with Amana Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amana Bank has no effect on the direction of Janashakthi Insurance i.e., Janashakthi Insurance and Amana Bank go up and down completely randomly.
Pair Corralation between Janashakthi Insurance and Amana Bank
Assuming the 90 days trading horizon Janashakthi Insurance is expected to generate 9.04 times less return on investment than Amana Bank. But when comparing it to its historical volatility, Janashakthi Insurance is 12.82 times less risky than Amana Bank. It trades about 0.06 of its potential returns per unit of risk. Amana Bank is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 300.00 in Amana Bank on September 2, 2024 and sell it today you would earn a total of 2,020 from holding Amana Bank or generate 673.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.57% |
| Values | Daily Returns |
Janashakthi Insurance vs. Amana Bank
Performance |
| Timeline |
| Janashakthi Insurance |
| Amana Bank |
Janashakthi Insurance and Amana Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janashakthi Insurance and Amana Bank
The main advantage of trading using opposite Janashakthi Insurance and Amana Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janashakthi Insurance position performs unexpectedly, Amana Bank 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 Amana Bank will offset losses from the drop in Amana Bank's long position.| Janashakthi Insurance vs. Prime Lands Residencies | Janashakthi Insurance vs. VIDULLANKA PLC | Janashakthi Insurance vs. EX PACK RUGATED CARTONS |
| Amana Bank vs. Eden Hotel Lanka | Amana Bank vs. Ceylon Hotels | Amana Bank vs. Hotel Sigiriya PLC | Amana Bank vs. John Keells Hotels |
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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