Correlation Between Guangzhou Zhujiang and Peoples Insurance
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By analyzing existing cross correlation between Guangzhou Zhujiang Brewery and Peoples Insurance of, you can compare the effects of market volatilities on Guangzhou Zhujiang 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 Guangzhou Zhujiang with a short position of Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Zhujiang and Peoples Insurance.
Diversification Opportunities for Guangzhou Zhujiang and Peoples Insurance
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangzhou and Peoples is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Zhujiang Brewery and Peoples Insurance of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance and Guangzhou Zhujiang 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 Guangzhou Zhujiang Brewery 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 Guangzhou Zhujiang i.e., Guangzhou Zhujiang and Peoples Insurance go up and down completely randomly.
Pair Corralation between Guangzhou Zhujiang and Peoples Insurance
Assuming the 90 days trading horizon Guangzhou Zhujiang is expected to generate 1.53 times less return on investment than Peoples Insurance. But when comparing it to its historical volatility, Guangzhou Zhujiang Brewery is 1.01 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 0.07 of returns per unit of risk over similar time horizon. If you would invest 515.00 in Peoples Insurance of on October 24, 2024 and sell it today you would earn a total of 172.00 from holding Peoples Insurance of or generate 33.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Zhujiang Brewery vs. Peoples Insurance of
Performance |
| Timeline |
| Guangzhou Zhujiang |
| Peoples Insurance |
Guangzhou Zhujiang and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Zhujiang and Peoples Insurance
The main advantage of trading using opposite Guangzhou Zhujiang and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Zhujiang 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.| Guangzhou Zhujiang vs. Peoples Insurance of | Guangzhou Zhujiang vs. Ningbo Tech Bank Co | Guangzhou Zhujiang vs. Hunan Investment Group | Guangzhou Zhujiang vs. Zhejiang Construction Investment |
| Peoples Insurance vs. Tibet Huayu Mining | Peoples Insurance vs. Chengtun Mining Group | Peoples Insurance vs. Zhengzhou Coal Mining | Peoples Insurance vs. Bingo 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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