Correlation Between Peoples Insurance and Kelani Cables
Specify exactly 2 symbols:
By analyzing existing cross correlation between Peoples Insurance PLC and Kelani Cables PLC, you can compare the effects of market volatilities on Peoples Insurance and Kelani Cables 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 Kelani Cables. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Kelani Cables.
Diversification Opportunities for Peoples Insurance and Kelani Cables
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Peoples and Kelani is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance PLC and Kelani Cables PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kelani Cables PLC 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 Kelani Cables. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kelani Cables PLC has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Kelani Cables go up and down completely randomly.
Pair Corralation between Peoples Insurance and Kelani Cables
Assuming the 90 days trading horizon Peoples Insurance PLC is expected to under-perform the Kelani Cables. But the stock apears to be less risky and, when comparing its historical volatility, Peoples Insurance PLC is 1.7 times less risky than Kelani Cables. The stock trades about -0.41 of its potential returns per unit of risk. The Kelani Cables PLC is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 54,175 in Kelani Cables PLC on November 29, 2024 and sell it today you would earn a total of 1,650 from holding Kelani Cables PLC or generate 3.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peoples Insurance PLC vs. Kelani Cables PLC
Performance |
| Timeline |
| Peoples Insurance PLC |
| Kelani Cables PLC |
Peoples Insurance and Kelani Cables Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Kelani Cables
The main advantage of trading using opposite Peoples Insurance and Kelani Cables positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Kelani Cables 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 Kelani Cables will offset losses from the drop in Kelani Cables' long position.| Peoples Insurance vs. Dolphin Hotels PLC | Peoples Insurance vs. Sanasa Development Bank | Peoples Insurance vs. CEYLINCO INSURANCE PLC | Peoples Insurance vs. Ceylinco Insurance PLC |
| Kelani Cables vs. Merchant Bank of | Kelani Cables vs. Softlogic Life Insurance | Kelani Cables vs. Sanasa Development Bank | Kelani Cables vs. Commercial Credit and |
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.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |