Correlation Between Renuka Agri and PEOPLES LEASING
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By analyzing existing cross correlation between Renuka Agri Foods and PEOPLES LEASING FINANCE, you can compare the effects of market volatilities on Renuka Agri and PEOPLES LEASING 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 Renuka Agri with a short position of PEOPLES LEASING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Renuka Agri and PEOPLES LEASING.
Diversification Opportunities for Renuka Agri and PEOPLES LEASING
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Renuka and PEOPLES is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Renuka Agri Foods and PEOPLES LEASING FINANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PEOPLES LEASING FINANCE and Renuka Agri 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 Renuka Agri Foods are associated (or correlated) with PEOPLES LEASING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PEOPLES LEASING FINANCE has no effect on the direction of Renuka Agri i.e., Renuka Agri and PEOPLES LEASING go up and down completely randomly.
Pair Corralation between Renuka Agri and PEOPLES LEASING
Assuming the 90 days trading horizon Renuka Agri is expected to generate 6.17 times less return on investment than PEOPLES LEASING. In addition to that, Renuka Agri is 1.77 times more volatile than PEOPLES LEASING FINANCE. It trades about 0.01 of its total potential returns per unit of risk. PEOPLES LEASING FINANCE is currently generating about 0.13 per unit of volatility. If you would invest 1,270 in PEOPLES LEASING FINANCE on August 28, 2024 and sell it today you would earn a total of 40.00 from holding PEOPLES LEASING FINANCE or generate 3.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Renuka Agri Foods vs. PEOPLES LEASING FINANCE
Performance |
| Timeline |
| Renuka Agri Foods |
| PEOPLES LEASING FINANCE |
Renuka Agri and PEOPLES LEASING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Renuka Agri and PEOPLES LEASING
The main advantage of trading using opposite Renuka Agri and PEOPLES LEASING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Renuka Agri position performs unexpectedly, PEOPLES LEASING 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 PEOPLES LEASING will offset losses from the drop in PEOPLES LEASING's long position.| Renuka Agri vs. Keells Food Products | Renuka Agri vs. Peoples Insurance PLC | Renuka Agri vs. Singhe Hospitals | Renuka Agri vs. Asiri Surgical Hospital |
| PEOPLES LEASING vs. Convenience Foods PLC | PEOPLES LEASING vs. Nuwara Eliya Hotels | PEOPLES LEASING vs. HVA Foods PLC | PEOPLES LEASING vs. Serendib Hotels 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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