Correlation Between Janashakthi Insurance and Hatton National
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By analyzing existing cross correlation between Janashakthi Insurance and Hatton National Bank, you can compare the effects of market volatilities on Janashakthi Insurance and Hatton National 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 Hatton National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janashakthi Insurance and Hatton National.
Diversification Opportunities for Janashakthi Insurance and Hatton National
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Janashakthi and Hatton is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Janashakthi Insurance and Hatton National Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hatton National 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 Hatton National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hatton National Bank has no effect on the direction of Janashakthi Insurance i.e., Janashakthi Insurance and Hatton National go up and down completely randomly.
Pair Corralation between Janashakthi Insurance and Hatton National
Assuming the 90 days trading horizon Janashakthi Insurance is expected to generate 1.88 times less return on investment than Hatton National. In addition to that, Janashakthi Insurance is 1.69 times more volatile than Hatton National Bank. It trades about 0.05 of its total potential returns per unit of risk. Hatton National Bank is currently generating about 0.15 per unit of volatility. If you would invest 21,950 in Hatton National Bank on August 28, 2024 and sell it today you would earn a total of 950.00 from holding Hatton National Bank or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Janashakthi Insurance vs. Hatton National Bank
Performance |
| Timeline |
| Janashakthi Insurance |
| Hatton National Bank |
Janashakthi Insurance and Hatton National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janashakthi Insurance and Hatton National
The main advantage of trading using opposite Janashakthi Insurance and Hatton National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janashakthi Insurance position performs unexpectedly, Hatton National 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 Hatton National will offset losses from the drop in Hatton National's long position.| Janashakthi Insurance vs. HVA Foods PLC | Janashakthi Insurance vs. Seylan Bank PLC | Janashakthi Insurance vs. Amaya Leisure PLC | Janashakthi Insurance vs. Ceylon Guardian Investment |
| Hatton National vs. Trans Asia Hotels | Hatton National vs. Mahaweli Reach Hotel | Hatton National vs. BROWNS INVESTMENTS PLC | Hatton National 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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