Correlation Between SEYLAN BANK and Peoples Insurance
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By analyzing existing cross correlation between SEYLAN BANK PLC and Peoples Insurance PLC, you can compare the effects of market volatilities on SEYLAN BANK and Peoples Insurance 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 SEYLAN BANK with a short position of Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEYLAN BANK and Peoples Insurance.
Diversification Opportunities for SEYLAN BANK and Peoples Insurance
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SEYLAN and Peoples is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding SEYLAN BANK PLC and Peoples Insurance PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance PLC and SEYLAN BANK 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 SEYLAN BANK PLC are associated (or correlated) with Peoples Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peoples Insurance PLC has no effect on the direction of SEYLAN BANK i.e., SEYLAN BANK and Peoples Insurance go up and down completely randomly.
Pair Corralation between SEYLAN BANK and Peoples Insurance
Assuming the 90 days trading horizon SEYLAN BANK PLC is expected to generate 1.22 times more return on investment than Peoples Insurance. However, SEYLAN BANK is 1.22 times more volatile than Peoples Insurance PLC. It trades about 0.06 of its potential returns per unit of risk. Peoples Insurance PLC is currently generating about 0.0 per unit of risk. If you would invest 3,900 in SEYLAN BANK PLC on August 31, 2024 and sell it today you would earn a total of 440.00 from holding SEYLAN BANK PLC or generate 11.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.17% |
| Values | Daily Returns |
SEYLAN BANK PLC vs. Peoples Insurance PLC
Performance |
| Timeline |
| SEYLAN BANK PLC |
| Peoples Insurance PLC |
SEYLAN BANK and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEYLAN BANK and Peoples Insurance
The main advantage of trading using opposite SEYLAN BANK and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEYLAN BANK position performs unexpectedly, Peoples Insurance 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 Insurance will offset losses from the drop in Peoples Insurance's long position.| SEYLAN BANK vs. HNB Finance | SEYLAN BANK vs. Prime Lands Residencies | SEYLAN BANK vs. Jat Holdings PLC | SEYLAN BANK vs. E M L |
| Peoples Insurance vs. HDFC Bank of | Peoples Insurance vs. Nations Trust Bank | Peoples Insurance vs. RENUKA FOODS PLC | Peoples Insurance 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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