Correlation Between Sri Lanka and PEOPLES LEASING
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By analyzing existing cross correlation between Sri Lanka Telecom and PEOPLES LEASING FINANCE, you can compare the effects of market volatilities on Sri Lanka 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 Sri Lanka with a short position of PEOPLES LEASING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sri Lanka and PEOPLES LEASING.
Diversification Opportunities for Sri Lanka and PEOPLES LEASING
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sri and PEOPLES is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Sri Lanka Telecom 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 Sri Lanka 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 Sri Lanka Telecom 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 Sri Lanka i.e., Sri Lanka and PEOPLES LEASING go up and down completely randomly.
Pair Corralation between Sri Lanka and PEOPLES LEASING
Assuming the 90 days trading horizon Sri Lanka Telecom is expected to under-perform the PEOPLES LEASING. But the stock apears to be less risky and, when comparing its historical volatility, Sri Lanka Telecom is 1.14 times less risky than PEOPLES LEASING. The stock trades about -0.16 of its potential returns per unit of risk. The PEOPLES LEASING FINANCE is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,320 in PEOPLES LEASING FINANCE on August 30, 2024 and sell it today you would earn a total of 0.00 from holding PEOPLES LEASING FINANCE or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Sri Lanka Telecom vs. PEOPLES LEASING FINANCE
Performance |
| Timeline |
| Sri Lanka Telecom |
| PEOPLES LEASING FINANCE |
Sri Lanka and PEOPLES LEASING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sri Lanka and PEOPLES LEASING
The main advantage of trading using opposite Sri Lanka and PEOPLES LEASING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sri Lanka 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.| Sri Lanka vs. EX PACK RUGATED CARTONS | Sri Lanka vs. PANASIAN POWER PLC | Sri Lanka vs. Distilleries Company of | Sri Lanka vs. Palm Garden Hotels |
| PEOPLES LEASING vs. EX PACK RUGATED CARTONS | PEOPLES LEASING vs. PANASIAN POWER PLC | PEOPLES LEASING vs. Distilleries Company of | PEOPLES LEASING vs. Palm Garden Hotels |
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 CEOs Directory module to screen CEOs from public companies around the world.
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