Correlation Between Ningbo Tech and Peoples Insurance
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By analyzing existing cross correlation between Ningbo Tech Bank Co and Peoples Insurance of, you can compare the effects of market volatilities on Ningbo Tech 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 Ningbo Tech with a short position of Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tech and Peoples Insurance.
Diversification Opportunities for Ningbo Tech and Peoples Insurance
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ningbo and Peoples is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tech Bank 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 Ningbo Tech 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 Ningbo Tech Bank 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 Ningbo Tech i.e., Ningbo Tech and Peoples Insurance go up and down completely randomly.
Pair Corralation between Ningbo Tech and Peoples Insurance
Assuming the 90 days trading horizon Ningbo Tech Bank Co is expected to generate 1.39 times more return on investment than Peoples Insurance. However, Ningbo Tech is 1.39 times more volatile than Peoples Insurance of. It trades about 0.11 of its potential returns per unit of risk. Peoples Insurance of is currently generating about -0.05 per unit of risk. If you would invest 260.00 in Ningbo Tech Bank Co on October 25, 2024 and sell it today you would earn a total of 45.00 from holding Ningbo Tech Bank Co or generate 17.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Tech Bank Co vs. Peoples Insurance of
Performance |
| Timeline |
| Ningbo Tech Bank |
| Peoples Insurance |
Ningbo Tech and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tech and Peoples Insurance
The main advantage of trading using opposite Ningbo Tech and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tech 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.| Ningbo Tech vs. Lotus Health Group | Ningbo Tech vs. Anhui Jinhe Industrial | Ningbo Tech vs. Dezhan HealthCare Co | Ningbo Tech vs. Ningbo Fujia Industrial |
| Peoples Insurance vs. Bank of China | Peoples Insurance vs. Kweichow Moutai Co | Peoples Insurance vs. PetroChina Co Ltd | Peoples Insurance vs. Bank of Communications |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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