Correlation Between Peoples Insurance and Softlogic Life
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By analyzing existing cross correlation between Peoples Insurance PLC and Softlogic Life Insurance, you can compare the effects of market volatilities on Peoples Insurance and Softlogic Life 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 Peoples Insurance with a short position of Softlogic Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Softlogic Life.
Diversification Opportunities for Peoples Insurance and Softlogic Life
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Peoples and Softlogic is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance PLC and Softlogic Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Softlogic Life Insurance and Peoples 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 Peoples Insurance PLC are associated (or correlated) with Softlogic Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Softlogic Life Insurance has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Softlogic Life go up and down completely randomly.
Pair Corralation between Peoples Insurance and Softlogic Life
Assuming the 90 days trading horizon Peoples Insurance PLC is expected to generate 1.43 times more return on investment than Softlogic Life. However, Peoples Insurance is 1.43 times more volatile than Softlogic Life Insurance. It trades about 0.05 of its potential returns per unit of risk. Softlogic Life Insurance is currently generating about 0.01 per unit of risk. If you would invest 2,250 in Peoples Insurance PLC on August 27, 2024 and sell it today you would earn a total of 30.00 from holding Peoples Insurance PLC or generate 1.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peoples Insurance PLC vs. Softlogic Life Insurance
Performance |
| Timeline |
| Peoples Insurance PLC |
| Softlogic Life Insurance |
Peoples Insurance and Softlogic Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Softlogic Life
The main advantage of trading using opposite Peoples Insurance and Softlogic Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Softlogic Life 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 Softlogic Life will offset losses from the drop in Softlogic Life's long position.| Peoples Insurance vs. Ceylon Hospitals PLC | Peoples Insurance vs. Ceylon Guardian Investment | Peoples Insurance vs. Lanka Realty Investments | Peoples Insurance vs. Palm Garden Hotels |
| Softlogic Life vs. COMMERCIAL BANK OF | Softlogic Life vs. Amaya Leisure PLC | Softlogic Life vs. Ceylinco Insurance PLC | Softlogic Life vs. Janashakthi Insurance |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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