Correlation Between Peoples Insurance and Arpico Insurance
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By analyzing existing cross correlation between Peoples Insurance PLC and Arpico Insurance, you can compare the effects of market volatilities on Peoples Insurance and Arpico 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 Peoples Insurance with a short position of Arpico Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Arpico Insurance.
Diversification Opportunities for Peoples Insurance and Arpico Insurance
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Peoples and Arpico is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance PLC and Arpico Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arpico 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 Arpico Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arpico Insurance has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Arpico Insurance go up and down completely randomly.
Pair Corralation between Peoples Insurance and Arpico Insurance
Assuming the 90 days trading horizon Peoples Insurance PLC is expected to under-perform the Arpico Insurance. But the stock apears to be less risky and, when comparing its historical volatility, Peoples Insurance PLC is 1.66 times less risky than Arpico Insurance. The stock trades about -0.05 of its potential returns per unit of risk. The Arpico Insurance is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,170 in Arpico Insurance on September 3, 2024 and sell it today you would earn a total of 120.00 from holding Arpico Insurance or generate 5.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 76.92% |
| Values | Daily Returns |
Peoples Insurance PLC vs. Arpico Insurance
Performance |
| Timeline |
| Peoples Insurance PLC |
| Arpico Insurance |
Peoples Insurance and Arpico Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Arpico Insurance
The main advantage of trading using opposite Peoples Insurance and Arpico Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Arpico 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 Arpico Insurance will offset losses from the drop in Arpico Insurance's long position.| Peoples Insurance vs. CEYLON HOSPITALS PLC | Peoples Insurance vs. Carson Cumberbatch PLC | Peoples Insurance vs. Distilleries Company of | Peoples Insurance vs. Citrus Leisure PLC |
| Arpico Insurance vs. Lanka Credit and | Arpico Insurance vs. VIDULLANKA PLC | Arpico Insurance vs. Carson Cumberbatch PLC | Arpico 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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