Correlation Between Janashakthi Insurance and PEOPLES LEASING
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By analyzing existing cross correlation between Janashakthi Insurance and PEOPLES LEASING FINANCE, you can compare the effects of market volatilities on Janashakthi Insurance and PEOPLES LEASING 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 PEOPLES LEASING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janashakthi Insurance and PEOPLES LEASING.
Diversification Opportunities for Janashakthi Insurance and PEOPLES LEASING
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Janashakthi and PEOPLES is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Janashakthi Insurance and PEOPLES LEASING FINANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PEOPLES LEASING FINANCE 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 PEOPLES LEASING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PEOPLES LEASING FINANCE has no effect on the direction of Janashakthi Insurance i.e., Janashakthi Insurance and PEOPLES LEASING go up and down completely randomly.
Pair Corralation between Janashakthi Insurance and PEOPLES LEASING
Assuming the 90 days trading horizon Janashakthi Insurance is expected to generate 1.77 times more return on investment than PEOPLES LEASING. However, Janashakthi Insurance is 1.77 times more volatile than PEOPLES LEASING FINANCE. It trades about 0.1 of its potential returns per unit of risk. PEOPLES LEASING FINANCE is currently generating about 0.03 per unit of risk. If you would invest 4,320 in Janashakthi Insurance on August 24, 2024 and sell it today you would earn a total of 200.00 from holding Janashakthi Insurance or generate 4.63% 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. PEOPLES LEASING FINANCE
Performance |
| Timeline |
| Janashakthi Insurance |
| PEOPLES LEASING FINANCE |
Janashakthi Insurance and PEOPLES LEASING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janashakthi Insurance and PEOPLES LEASING
The main advantage of trading using opposite Janashakthi Insurance and PEOPLES LEASING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janashakthi Insurance position performs unexpectedly, PEOPLES LEASING 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 PEOPLES LEASING will offset losses from the drop in PEOPLES LEASING's long position.| Janashakthi Insurance vs. Jat Holdings PLC | Janashakthi Insurance vs. Lanka Credit and | Janashakthi Insurance vs. Carson Cumberbatch PLC | Janashakthi Insurance vs. Mahaweli Reach Hotel |
| PEOPLES LEASING vs. Jat Holdings PLC | PEOPLES LEASING vs. Lanka Credit and | PEOPLES LEASING vs. Carson Cumberbatch PLC | PEOPLES LEASING vs. Mahaweli Reach 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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