Correlation Between Shenwu Energy and Peoples Insurance
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By analyzing existing cross correlation between Shenwu Energy Saving and Peoples Insurance of, you can compare the effects of market volatilities on Shenwu Energy 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 Shenwu Energy with a short position of Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenwu Energy and Peoples Insurance.
Diversification Opportunities for Shenwu Energy and Peoples Insurance
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shenwu and Peoples is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Shenwu Energy Saving and Peoples Insurance of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance and Shenwu Energy 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 Shenwu Energy Saving 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 Shenwu Energy i.e., Shenwu Energy and Peoples Insurance go up and down completely randomly.
Pair Corralation between Shenwu Energy and Peoples Insurance
Assuming the 90 days trading horizon Shenwu Energy Saving is expected to under-perform the Peoples Insurance. In addition to that, Shenwu Energy is 3.96 times more volatile than Peoples Insurance of. It trades about -0.04 of its total potential returns per unit of risk. Peoples Insurance of is currently generating about -0.01 per unit of volatility. If you would invest 720.00 in Peoples Insurance of on November 3, 2024 and sell it today you would lose (4.00) from holding Peoples Insurance of or give up 0.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenwu Energy Saving vs. Peoples Insurance of
Performance |
| Timeline |
| Shenwu Energy Saving |
| Peoples Insurance |
Shenwu Energy and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenwu Energy and Peoples Insurance
The main advantage of trading using opposite Shenwu Energy and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenwu Energy 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.| Shenwu Energy vs. Tjk Machinery Tianjin | Shenwu Energy vs. Sinomach General Machinery | Shenwu Energy vs. Fujian Boss Software | Shenwu Energy vs. Masterwork Machinery |
| Peoples Insurance vs. CIMC Vehicles Co | Peoples Insurance vs. Guocheng Mining Co | Peoples Insurance vs. Iat Automobile Technology | Peoples Insurance vs. Shengda Mining Co |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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