Correlation Between Peoples Insurance and Sigiriya Village
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By analyzing existing cross correlation between Peoples Insurance PLC and Sigiriya Village Hotels, you can compare the effects of market volatilities on Peoples Insurance and Sigiriya Village 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 Sigiriya Village. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Sigiriya Village.
Diversification Opportunities for Peoples Insurance and Sigiriya Village
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Peoples and Sigiriya is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance PLC and Sigiriya Village Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sigiriya Village Hotels 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 Sigiriya Village. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sigiriya Village Hotels has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Sigiriya Village go up and down completely randomly.
Pair Corralation between Peoples Insurance and Sigiriya Village
Assuming the 90 days trading horizon Peoples Insurance is expected to generate 3.55 times less return on investment than Sigiriya Village. But when comparing it to its historical volatility, Peoples Insurance PLC is 1.41 times less risky than Sigiriya Village. It trades about 0.17 of its potential returns per unit of risk. Sigiriya Village Hotels is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 3,300 in Sigiriya Village Hotels on September 12, 2024 and sell it today you would earn a total of 3,210 from holding Sigiriya Village Hotels or generate 97.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.31% |
| Values | Daily Returns |
Peoples Insurance PLC vs. Sigiriya Village Hotels
Performance |
| Timeline |
| Peoples Insurance PLC |
| Sigiriya Village Hotels |
Peoples Insurance and Sigiriya Village Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Sigiriya Village
The main advantage of trading using opposite Peoples Insurance and Sigiriya Village positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Sigiriya Village 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 Sigiriya Village will offset losses from the drop in Sigiriya Village's long position.| Peoples Insurance vs. HVA Foods PLC | Peoples Insurance vs. Asiri Surgical Hospital | Peoples Insurance vs. Serendib Hotels PLC | Peoples Insurance vs. Hotel Sigiriya PLC |
| Sigiriya Village vs. Jat Holdings PLC | Sigiriya Village vs. Lanka Credit and | Sigiriya Village vs. VIDULLANKA PLC | Sigiriya Village vs. Carson Cumberbatch 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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