Correlation Between Janashakthi Insurance and Nations Trust
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By analyzing existing cross correlation between Janashakthi Insurance and Nations Trust Bank, you can compare the effects of market volatilities on Janashakthi Insurance and Nations Trust 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 Nations Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janashakthi Insurance and Nations Trust.
Diversification Opportunities for Janashakthi Insurance and Nations Trust
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Janashakthi and Nations is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Janashakthi Insurance and Nations Trust Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nations Trust 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 Nations Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nations Trust Bank has no effect on the direction of Janashakthi Insurance i.e., Janashakthi Insurance and Nations Trust go up and down completely randomly.
Pair Corralation between Janashakthi Insurance and Nations Trust
Assuming the 90 days trading horizon Janashakthi Insurance is expected to generate 2.49 times less return on investment than Nations Trust. In addition to that, Janashakthi Insurance is 1.4 times more volatile than Nations Trust Bank. It trades about 0.04 of its total potential returns per unit of risk. Nations Trust Bank is currently generating about 0.14 per unit of volatility. If you would invest 4,710 in Nations Trust Bank on August 31, 2024 and sell it today you would earn a total of 10,290 from holding Nations Trust Bank or generate 218.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.68% |
| Values | Daily Returns |
Janashakthi Insurance vs. Nations Trust Bank
Performance |
| Timeline |
| Janashakthi Insurance |
| Nations Trust Bank |
Janashakthi Insurance and Nations Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janashakthi Insurance and Nations Trust
The main advantage of trading using opposite Janashakthi Insurance and Nations Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janashakthi Insurance position performs unexpectedly, Nations Trust 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 Nations Trust will offset losses from the drop in Nations Trust'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 |
| Nations Trust vs. HNB Finance | Nations Trust vs. Prime Lands Residencies | Nations Trust vs. Jat Holdings PLC | Nations Trust 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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