Correlation Between Arpico Insurance and Singhe Hospitals
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By analyzing existing cross correlation between Arpico Insurance and Singhe Hospitals, you can compare the effects of market volatilities on Arpico Insurance and Singhe Hospitals 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 Arpico Insurance with a short position of Singhe Hospitals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arpico Insurance and Singhe Hospitals.
Diversification Opportunities for Arpico Insurance and Singhe Hospitals
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Arpico and Singhe is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Arpico Insurance and Singhe Hospitals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singhe Hospitals and Arpico 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 Arpico Insurance are associated (or correlated) with Singhe Hospitals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singhe Hospitals has no effect on the direction of Arpico Insurance i.e., Arpico Insurance and Singhe Hospitals go up and down completely randomly.
Pair Corralation between Arpico Insurance and Singhe Hospitals
Assuming the 90 days trading horizon Arpico Insurance is expected to generate 1.63 times less return on investment than Singhe Hospitals. In addition to that, Arpico Insurance is 1.02 times more volatile than Singhe Hospitals. It trades about 0.06 of its total potential returns per unit of risk. Singhe Hospitals is currently generating about 0.1 per unit of volatility. If you would invest 240.00 in Singhe Hospitals on October 11, 2024 and sell it today you would earn a total of 20.00 from holding Singhe Hospitals or generate 8.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Arpico Insurance vs. Singhe Hospitals
Performance |
Timeline |
Arpico Insurance |
Singhe Hospitals |
Arpico Insurance and Singhe Hospitals Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Arpico Insurance and Singhe Hospitals
The main advantage of trading using opposite Arpico Insurance and Singhe Hospitals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arpico Insurance position performs unexpectedly, Singhe Hospitals 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 Singhe Hospitals will offset losses from the drop in Singhe Hospitals' long position.Arpico Insurance vs. National Development Bank | Arpico Insurance vs. Ceylon Hotels | Arpico Insurance vs. HATTON NATIONAL BANK | Arpico Insurance vs. Sigiriya Village Hotels |
Singhe Hospitals vs. Arpico Insurance | Singhe Hospitals vs. Asian Hotels and | Singhe Hospitals vs. CEYLINCO INSURANCE PLC | Singhe Hospitals vs. Hatton National Bank |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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