Correlation Between Janashakthi Insurance and Nuwara Eliya
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By analyzing existing cross correlation between Janashakthi Insurance and Nuwara Eliya Hotels, you can compare the effects of market volatilities on Janashakthi Insurance and Nuwara Eliya 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 Nuwara Eliya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janashakthi Insurance and Nuwara Eliya.
Diversification Opportunities for Janashakthi Insurance and Nuwara Eliya
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Janashakthi and Nuwara is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Janashakthi Insurance and Nuwara Eliya Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuwara Eliya 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 Nuwara Eliya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuwara Eliya Hotels has no effect on the direction of Janashakthi Insurance i.e., Janashakthi Insurance and Nuwara Eliya go up and down completely randomly.
Pair Corralation between Janashakthi Insurance and Nuwara Eliya
Assuming the 90 days trading horizon Janashakthi Insurance is expected to generate 1.65 times less return on investment than Nuwara Eliya. But when comparing it to its historical volatility, Janashakthi Insurance is 1.83 times less risky than Nuwara Eliya. It trades about 0.21 of its potential returns per unit of risk. Nuwara Eliya Hotels is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 184,175 in Nuwara Eliya Hotels on August 31, 2024 and sell it today you would earn a total of 49,300 from holding Nuwara Eliya Hotels or generate 26.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 64.41% |
| Values | Daily Returns |
Janashakthi Insurance vs. Nuwara Eliya Hotels
Performance |
| Timeline |
| Janashakthi Insurance |
| Nuwara Eliya Hotels |
Janashakthi Insurance and Nuwara Eliya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janashakthi Insurance and Nuwara Eliya
The main advantage of trading using opposite Janashakthi Insurance and Nuwara Eliya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janashakthi Insurance position performs unexpectedly, Nuwara Eliya 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 Nuwara Eliya will offset losses from the drop in Nuwara Eliya'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 |
| Nuwara Eliya vs. Asian Hotels and | Nuwara Eliya vs. HVA Foods PLC | Nuwara Eliya vs. Palm Garden Hotels | Nuwara Eliya vs. Distilleries Company of |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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