Correlation Between Shandong Hongchuang and Peoples Insurance
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By analyzing existing cross correlation between Shandong Hongchuang Aluminum and Peoples Insurance of, you can compare the effects of market volatilities on Shandong Hongchuang 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 Shandong Hongchuang with a short position of Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Hongchuang and Peoples Insurance.
Diversification Opportunities for Shandong Hongchuang and Peoples Insurance
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and Peoples is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Hongchuang Aluminum and Peoples Insurance of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance and Shandong Hongchuang 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 Shandong Hongchuang Aluminum 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 Shandong Hongchuang i.e., Shandong Hongchuang and Peoples Insurance go up and down completely randomly.
Pair Corralation between Shandong Hongchuang and Peoples Insurance
Assuming the 90 days trading horizon Shandong Hongchuang Aluminum is expected to generate 1.32 times more return on investment than Peoples Insurance. However, Shandong Hongchuang is 1.32 times more volatile than Peoples Insurance of. It trades about 0.08 of its potential returns per unit of risk. Peoples Insurance of is currently generating about 0.06 per unit of risk. If you would invest 424.00 in Shandong Hongchuang Aluminum on September 28, 2024 and sell it today you would earn a total of 473.00 from holding Shandong Hongchuang Aluminum or generate 111.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Shandong Hongchuang Aluminum vs. Peoples Insurance of
Performance |
| Timeline |
| Shandong Hongchuang |
| Peoples Insurance |
Shandong Hongchuang and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Hongchuang and Peoples Insurance
The main advantage of trading using opposite Shandong Hongchuang and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Hongchuang 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.| Shandong Hongchuang vs. Wintao Communications Co | Shandong Hongchuang vs. Xiangpiaopiao Food Co | Shandong Hongchuang vs. Gansu Huangtai Wine marketing | Shandong Hongchuang vs. Qingdao Foods Co |
| Peoples Insurance vs. Industrial and Commercial | Peoples Insurance vs. Agricultural Bank of | Peoples Insurance vs. China Construction Bank | Peoples Insurance 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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