Correlation Between Pan Asia and Janashakthi Insurance
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By analyzing existing cross correlation between Pan Asia Banking and Janashakthi Insurance, you can compare the effects of market volatilities on Pan Asia and Janashakthi Insurance 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 Pan Asia with a short position of Janashakthi Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pan Asia and Janashakthi Insurance.
Diversification Opportunities for Pan Asia and Janashakthi Insurance
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Pan and Janashakthi is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Pan Asia Banking and Janashakthi Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janashakthi Insurance and Pan Asia 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 Pan Asia Banking are associated (or correlated) with Janashakthi Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janashakthi Insurance has no effect on the direction of Pan Asia i.e., Pan Asia and Janashakthi Insurance go up and down completely randomly.
Pair Corralation between Pan Asia and Janashakthi Insurance
Assuming the 90 days trading horizon Pan Asia Banking is expected to generate 0.7 times more return on investment than Janashakthi Insurance. However, Pan Asia Banking is 1.43 times less risky than Janashakthi Insurance. It trades about 0.1 of its potential returns per unit of risk. Janashakthi Insurance is currently generating about 0.04 per unit of risk. If you would invest 1,910 in Pan Asia Banking on September 3, 2024 and sell it today you would earn a total of 820.00 from holding Pan Asia Banking or generate 42.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.15% |
| Values | Daily Returns |
Pan Asia Banking vs. Janashakthi Insurance
Performance |
| Timeline |
| Pan Asia Banking |
| Janashakthi Insurance |
Pan Asia and Janashakthi Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pan Asia and Janashakthi Insurance
The main advantage of trading using opposite Pan Asia and Janashakthi Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pan Asia position performs unexpectedly, Janashakthi Insurance 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 Janashakthi Insurance will offset losses from the drop in Janashakthi Insurance's long position.| Pan Asia vs. Eden Hotel Lanka | Pan Asia vs. Browns Beach Hotels | Pan Asia vs. Aitken Spence Hotel | Pan Asia vs. Tal Lanka Hotels |
| Janashakthi Insurance vs. Lanka Credit and | Janashakthi Insurance vs. VIDULLANKA PLC | Janashakthi Insurance vs. Carson Cumberbatch PLC | Janashakthi Insurance vs. Peoples Insurance PLC |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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