Correlation Between Hunan Investment and Peoples Insurance
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By analyzing existing cross correlation between Hunan Investment Group and Peoples Insurance of, you can compare the effects of market volatilities on Hunan Investment 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 Hunan Investment with a short position of Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Investment and Peoples Insurance.
Diversification Opportunities for Hunan Investment and Peoples Insurance
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hunan and Peoples is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Investment Group and Peoples Insurance of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance and Hunan Investment 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 Hunan Investment Group 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 has no effect on the direction of Hunan Investment i.e., Hunan Investment and Peoples Insurance go up and down completely randomly.
Pair Corralation between Hunan Investment and Peoples Insurance
Assuming the 90 days trading horizon Hunan Investment is expected to generate 5.19 times less return on investment than Peoples Insurance. In addition to that, Hunan Investment is 1.35 times more volatile than Peoples Insurance of. It trades about 0.01 of its total potential returns per unit of risk. Peoples Insurance of is currently generating about 0.05 per unit of volatility. If you would invest 491.00 in Peoples Insurance of on October 29, 2024 and sell it today you would earn a total of 225.00 from holding Peoples Insurance of or generate 45.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Investment Group vs. Peoples Insurance of
Performance |
| Timeline |
| Hunan Investment |
| Peoples Insurance |
Hunan Investment and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Investment and Peoples Insurance
The main advantage of trading using opposite Hunan Investment and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Investment 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.| Hunan Investment vs. Marssenger Kitchenware Co | Hunan Investment vs. Fujian Anjoy Foods | Hunan Investment vs. Xinjiang Baodi Mining | Hunan Investment vs. Anhui Deli Household |
| Peoples Insurance vs. BeiGene | Peoples Insurance vs. Kweichow Moutai Co | Peoples Insurance vs. Beijing Roborock Technology | Peoples Insurance vs. G bits Network Technology |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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