Correlation Between Janashakthi Insurance and Lanka Realty
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By analyzing existing cross correlation between Janashakthi Insurance and Lanka Realty Investments, you can compare the effects of market volatilities on Janashakthi Insurance and Lanka Realty 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 Lanka Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janashakthi Insurance and Lanka Realty.
Diversification Opportunities for Janashakthi Insurance and Lanka Realty
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Janashakthi and Lanka is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Janashakthi Insurance and Lanka Realty Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lanka Realty Investments 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 Lanka Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lanka Realty Investments has no effect on the direction of Janashakthi Insurance i.e., Janashakthi Insurance and Lanka Realty go up and down completely randomly.
Pair Corralation between Janashakthi Insurance and Lanka Realty
Assuming the 90 days trading horizon Janashakthi Insurance is expected to generate 1.03 times more return on investment than Lanka Realty. However, Janashakthi Insurance is 1.03 times more volatile than Lanka Realty Investments. It trades about 0.03 of its potential returns per unit of risk. Lanka Realty Investments is currently generating about -0.14 per unit of risk. If you would invest 4,460 in Janashakthi Insurance on August 31, 2024 and sell it today you would earn a total of 50.00 from holding Janashakthi Insurance or generate 1.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Janashakthi Insurance vs. Lanka Realty Investments
Performance |
| Timeline |
| Janashakthi Insurance |
| Lanka Realty Investments |
Janashakthi Insurance and Lanka Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janashakthi Insurance and Lanka Realty
The main advantage of trading using opposite Janashakthi Insurance and Lanka Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janashakthi Insurance position performs unexpectedly, Lanka Realty 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 Lanka Realty will offset losses from the drop in Lanka Realty's long position.| Janashakthi Insurance vs. HNB Finance | Janashakthi Insurance vs. Prime Lands Residencies | Janashakthi Insurance vs. Jat Holdings PLC | Janashakthi Insurance vs. E M L |
| Lanka Realty vs. HNB Finance | Lanka Realty vs. Prime Lands Residencies | Lanka Realty vs. Jat Holdings PLC | Lanka Realty 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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