Correlation Between EX PACK and Janashakthi Insurance
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By analyzing existing cross correlation between EX PACK RUGATED CARTONS and Janashakthi Insurance, you can compare the effects of market volatilities on EX PACK 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 EX PACK with a short position of Janashakthi Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of EX PACK and Janashakthi Insurance.
Diversification Opportunities for EX PACK and Janashakthi Insurance
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PACKN0000 and Janashakthi is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding EX PACK RUGATED CARTONS and Janashakthi Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janashakthi Insurance and EX PACK 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 EX PACK RUGATED CARTONS 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 EX PACK i.e., EX PACK and Janashakthi Insurance go up and down completely randomly.
Pair Corralation between EX PACK and Janashakthi Insurance
Assuming the 90 days trading horizon EX PACK is expected to generate 2.3 times less return on investment than Janashakthi Insurance. But when comparing it to its historical volatility, EX PACK RUGATED CARTONS is 1.74 times less risky than Janashakthi Insurance. It trades about 0.04 of its potential returns per unit of risk. Janashakthi Insurance is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,900 in Janashakthi Insurance on September 4, 2024 and sell it today you would earn a total of 1,130 from holding Janashakthi Insurance or generate 28.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.14% |
| Values | Daily Returns |
EX PACK RUGATED CARTONS vs. Janashakthi Insurance
Performance |
| Timeline |
| EX PACK RUGATED |
| Janashakthi Insurance |
EX PACK and Janashakthi Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EX PACK and Janashakthi Insurance
The main advantage of trading using opposite EX PACK and Janashakthi Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EX PACK 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.| EX PACK vs. Lighthouse Hotel PLC | EX PACK vs. Sigiriya Village Hotels | EX PACK vs. Tangerine Beach Hotels | EX PACK vs. Kandy Hotels |
| Janashakthi Insurance vs. Browns Beach Hotels | Janashakthi Insurance vs. Lion Brewery Ceylon | Janashakthi Insurance vs. Aitken Spence Hotel | Janashakthi Insurance vs. Lanka Milk Foods |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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