Correlation Between PEOPLES LEASING and RENUKA FOODS
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By analyzing existing cross correlation between PEOPLES LEASING FINANCE and RENUKA FOODS PLC, you can compare the effects of market volatilities on PEOPLES LEASING and RENUKA FOODS 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 LEASING with a short position of RENUKA FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of PEOPLES LEASING and RENUKA FOODS.
Diversification Opportunities for PEOPLES LEASING and RENUKA FOODS
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PEOPLES and RENUKA is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding PEOPLES LEASING FINANCE and RENUKA FOODS PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RENUKA FOODS PLC and PEOPLES LEASING 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 LEASING FINANCE are associated (or correlated) with RENUKA FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RENUKA FOODS PLC has no effect on the direction of PEOPLES LEASING i.e., PEOPLES LEASING and RENUKA FOODS go up and down completely randomly.
Pair Corralation between PEOPLES LEASING and RENUKA FOODS
Assuming the 90 days trading horizon PEOPLES LEASING FINANCE is expected to generate 0.68 times more return on investment than RENUKA FOODS. However, PEOPLES LEASING FINANCE is 1.48 times less risky than RENUKA FOODS. It trades about 0.08 of its potential returns per unit of risk. RENUKA FOODS PLC is currently generating about -0.04 per unit of risk. If you would invest 770.00 in PEOPLES LEASING FINANCE on August 24, 2024 and sell it today you would earn a total of 540.00 from holding PEOPLES LEASING FINANCE or generate 70.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 74.11% |
| Values | Daily Returns |
PEOPLES LEASING FINANCE vs. RENUKA FOODS PLC
Performance |
| Timeline |
| PEOPLES LEASING FINANCE |
| RENUKA FOODS PLC |
PEOPLES LEASING and RENUKA FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PEOPLES LEASING and RENUKA FOODS
The main advantage of trading using opposite PEOPLES LEASING and RENUKA FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PEOPLES LEASING position performs unexpectedly, RENUKA FOODS 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 RENUKA FOODS will offset losses from the drop in RENUKA FOODS's long position.| PEOPLES LEASING vs. Lanka Credit and | PEOPLES LEASING vs. Carson Cumberbatch PLC | PEOPLES LEASING vs. Mahaweli Reach Hotel | PEOPLES LEASING vs. Lankem Ceylon PLC |
| RENUKA FOODS vs. Lanka Credit and | RENUKA FOODS vs. Carson Cumberbatch PLC | RENUKA FOODS vs. Mahaweli Reach Hotel | RENUKA FOODS vs. Lankem Ceylon 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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