Correlation Between Peoples Insurance and Sanasa Development
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By analyzing existing cross correlation between Peoples Insurance PLC and Sanasa Development Bank, you can compare the effects of market volatilities on Peoples Insurance and Sanasa Development 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 Sanasa Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Sanasa Development.
Diversification Opportunities for Peoples Insurance and Sanasa Development
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Peoples and Sanasa is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance PLC and Sanasa Development Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanasa Development 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 Sanasa Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanasa Development Bank has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Sanasa Development go up and down completely randomly.
Pair Corralation between Peoples Insurance and Sanasa Development
Assuming the 90 days trading horizon Peoples Insurance PLC is expected to generate 0.99 times more return on investment than Sanasa Development. However, Peoples Insurance PLC is 1.01 times less risky than Sanasa Development. It trades about 0.17 of its potential returns per unit of risk. Sanasa Development Bank is currently generating about 0.02 per unit of risk. If you would invest 3,140 in Peoples Insurance PLC on November 4, 2024 and sell it today you would earn a total of 260.00 from holding Peoples Insurance PLC or generate 8.28% 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. Sanasa Development Bank
Performance |
| Timeline |
| Peoples Insurance PLC |
| Sanasa Development Bank |
Peoples Insurance and Sanasa Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Sanasa Development
The main advantage of trading using opposite Peoples Insurance and Sanasa Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Sanasa Development 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 Sanasa Development will offset losses from the drop in Sanasa Development'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 |
| Sanasa Development vs. BROWNS INVESTMENTS PLC | Sanasa Development vs. PEOPLES LEASING FINANCE | Sanasa Development vs. Ceylon Guardian Investment | Sanasa Development 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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