Correlation Between LianChuang Electronic and Peoples Insurance
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By analyzing existing cross correlation between LianChuang Electronic Technology and Peoples Insurance of, you can compare the effects of market volatilities on LianChuang Electronic 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 LianChuang Electronic with a short position of Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of LianChuang Electronic and Peoples Insurance.
Diversification Opportunities for LianChuang Electronic and Peoples Insurance
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between LianChuang and Peoples is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding LianChuang Electronic Technolo and Peoples Insurance of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance and LianChuang Electronic 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 LianChuang Electronic Technology 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 LianChuang Electronic i.e., LianChuang Electronic and Peoples Insurance go up and down completely randomly.
Pair Corralation between LianChuang Electronic and Peoples Insurance
Assuming the 90 days trading horizon LianChuang Electronic Technology is expected to under-perform the Peoples Insurance. In addition to that, LianChuang Electronic is 2.3 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 0.12 per unit of volatility. If you would invest 737.00 in Peoples Insurance of on September 14, 2024 and sell it today you would earn a total of 31.00 from holding Peoples Insurance of or generate 4.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
LianChuang Electronic Technolo vs. Peoples Insurance of
Performance |
| Timeline |
| LianChuang Electronic |
| Peoples Insurance |
LianChuang Electronic and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LianChuang Electronic and Peoples Insurance
The main advantage of trading using opposite LianChuang Electronic and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LianChuang Electronic 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.| LianChuang Electronic vs. Industrial and Commercial | LianChuang Electronic vs. Agricultural Bank of | LianChuang Electronic vs. China Construction Bank | LianChuang Electronic vs. Bank of China |
| Peoples Insurance vs. Cultural Investment Holdings | Peoples Insurance vs. Gome Telecom Equipment | Peoples Insurance vs. Holitech Technology Co | Peoples Insurance vs. Zotye Automobile 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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