Correlation Between Peoples Insurance and Hatton National
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By analyzing existing cross correlation between Peoples Insurance PLC and Hatton National Bank, you can compare the effects of market volatilities on Peoples Insurance and Hatton National 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 Hatton National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Hatton National.
Diversification Opportunities for Peoples Insurance and Hatton National
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Peoples and Hatton is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance PLC and Hatton National Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hatton National Bank 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 Hatton National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hatton National Bank has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Hatton National go up and down completely randomly.
Pair Corralation between Peoples Insurance and Hatton National
Assuming the 90 days trading horizon Peoples Insurance is expected to generate 1.15 times less return on investment than Hatton National. In addition to that, Peoples Insurance is 1.36 times more volatile than Hatton National Bank. It trades about 0.17 of its total potential returns per unit of risk. Hatton National Bank is currently generating about 0.26 per unit of volatility. If you would invest 32,025 in Hatton National Bank on November 4, 2024 and sell it today you would earn a total of 3,200 from holding Hatton National Bank or generate 9.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peoples Insurance PLC vs. Hatton National Bank
Performance |
| Timeline |
| Peoples Insurance PLC |
| Hatton National Bank |
Peoples Insurance and Hatton National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Hatton National
The main advantage of trading using opposite Peoples Insurance and Hatton National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Hatton National 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 Hatton National will offset losses from the drop in Hatton National's long position.| Peoples Insurance vs. Janashakthi Insurance | Peoples Insurance vs. Renuka Agri Foods | Peoples Insurance vs. Citrus Leisure PLC | Peoples Insurance vs. Softlogic Life Insurance |
| Hatton National vs. Renuka Agri Foods | Hatton National vs. Asiri Surgical Hospital | Hatton National vs. RENUKA FOODS PLC | Hatton National vs. Convenience Foods 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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