Correlation Between Janashakthi Insurance and Asian Hotels
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By analyzing existing cross correlation between Janashakthi Insurance and Asian Hotels and, you can compare the effects of market volatilities on Janashakthi Insurance and Asian Hotels 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 Asian Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janashakthi Insurance and Asian Hotels.
Diversification Opportunities for Janashakthi Insurance and Asian Hotels
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Janashakthi and Asian is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Janashakthi Insurance and Asian Hotels and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asian Hotels 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 Asian Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asian Hotels has no effect on the direction of Janashakthi Insurance i.e., Janashakthi Insurance and Asian Hotels go up and down completely randomly.
Pair Corralation between Janashakthi Insurance and Asian Hotels
Assuming the 90 days trading horizon Janashakthi Insurance is expected to generate 1.28 times more return on investment than Asian Hotels. However, Janashakthi Insurance is 1.28 times more volatile than Asian Hotels and. It trades about 0.08 of its potential returns per unit of risk. Asian Hotels and is currently generating about 0.04 per unit of risk. If you would invest 2,970 in Janashakthi Insurance on November 29, 2024 and sell it today you would earn a total of 3,630 from holding Janashakthi Insurance or generate 122.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.28% |
| Values | Daily Returns |
Janashakthi Insurance vs. Asian Hotels and
Performance |
| Timeline |
| Janashakthi Insurance |
| Asian Hotels |
Janashakthi Insurance and Asian Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janashakthi Insurance and Asian Hotels
The main advantage of trading using opposite Janashakthi Insurance and Asian Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janashakthi Insurance position performs unexpectedly, Asian Hotels 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 Asian Hotels will offset losses from the drop in Asian Hotels' long position.| Janashakthi Insurance vs. Lanka Realty Investments | Janashakthi Insurance vs. Convenience Foods PLC | Janashakthi Insurance vs. John Keells Hotels | Janashakthi Insurance vs. Arpico Insurance |
| Asian Hotels vs. BROWNS INVESTMENTS PLC | Asian Hotels vs. Lanka Milk Foods | Asian Hotels vs. Trans Asia Hotels | Asian Hotels vs. Renuka City Hotel |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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