Correlation Between Yantai Moon and Peoples Insurance
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By analyzing existing cross correlation between Yantai Moon Co and Peoples Insurance of, you can compare the effects of market volatilities on Yantai Moon 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 Yantai Moon with a short position of Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yantai Moon and Peoples Insurance.
Diversification Opportunities for Yantai Moon and Peoples Insurance
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yantai and Peoples is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Yantai Moon Co and Peoples Insurance of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance and Yantai Moon 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 Yantai Moon Co 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 Yantai Moon i.e., Yantai Moon and Peoples Insurance go up and down completely randomly.
Pair Corralation between Yantai Moon and Peoples Insurance
Assuming the 90 days trading horizon Yantai Moon Co is expected to under-perform the Peoples Insurance. In addition to that, Yantai Moon is 1.46 times more volatile than Peoples Insurance of. It trades about -0.07 of its total potential returns per unit of risk. Peoples Insurance of is currently generating about 0.08 per unit of volatility. If you would invest 727.00 in Peoples Insurance of on September 13, 2024 and sell it today you would earn a total of 18.00 from holding Peoples Insurance of or generate 2.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yantai Moon Co vs. Peoples Insurance of
Performance |
| Timeline |
| Yantai Moon |
| Peoples Insurance |
Yantai Moon and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yantai Moon and Peoples Insurance
The main advantage of trading using opposite Yantai Moon and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yantai Moon 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.| Yantai Moon vs. Industrial and Commercial | Yantai Moon vs. China Construction Bank | Yantai Moon vs. Agricultural Bank of | Yantai Moon vs. Bank of China |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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