Correlation Between Andon Health and Peoples Insurance
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By analyzing existing cross correlation between Andon Health Co and Peoples Insurance of, you can compare the effects of market volatilities on Andon Health 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 Andon Health with a short position of Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Andon Health and Peoples Insurance.
Diversification Opportunities for Andon Health and Peoples Insurance
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Andon and Peoples is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Andon Health 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 Andon Health 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 Andon Health 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 Andon Health i.e., Andon Health and Peoples Insurance go up and down completely randomly.
Pair Corralation between Andon Health and Peoples Insurance
Assuming the 90 days trading horizon Andon Health is expected to generate 2.55 times less return on investment than Peoples Insurance. But when comparing it to its historical volatility, Andon Health Co is 1.1 times less risky than Peoples Insurance. It trades about 0.05 of its potential returns per unit of risk. Peoples Insurance of is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 613.00 in Peoples Insurance of on September 2, 2024 and sell it today you would earn a total of 111.00 from holding Peoples Insurance of or generate 18.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Andon Health Co vs. Peoples Insurance of
Performance |
| Timeline |
| Andon Health |
| Peoples Insurance |
Andon Health and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Andon Health and Peoples Insurance
The main advantage of trading using opposite Andon Health and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Andon Health 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.| Andon Health vs. Guizhou Chanhen Chemical | Andon Health vs. Qinghaihuading Industrial Co | Andon Health vs. Shenyang Chemical Industry | Andon Health vs. Do Fluoride Chemicals Co |
| Peoples Insurance vs. Shandong Mining Machinery | Peoples Insurance vs. Shenzhen Shenbao Industrial | Peoples Insurance vs. Lonkey Industrial Co | Peoples Insurance vs. Dhc Software 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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