Correlation Between Guosheng Financial and Peoples Insurance
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By analyzing existing cross correlation between Guosheng Financial Holding and Peoples Insurance of, you can compare the effects of market volatilities on Guosheng Financial 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 Guosheng Financial with a short position of Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guosheng Financial and Peoples Insurance.
Diversification Opportunities for Guosheng Financial and Peoples Insurance
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guosheng and Peoples is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Guosheng Financial Holding and Peoples Insurance of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance and Guosheng Financial 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 Guosheng Financial Holding 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 Guosheng Financial i.e., Guosheng Financial and Peoples Insurance go up and down completely randomly.
Pair Corralation between Guosheng Financial and Peoples Insurance
Assuming the 90 days trading horizon Guosheng Financial Holding is expected to generate 1.94 times more return on investment than Peoples Insurance. However, Guosheng Financial is 1.94 times more volatile than Peoples Insurance of. It trades about 0.09 of its potential returns per unit of risk. Peoples Insurance of is currently generating about 0.12 per unit of risk. If you would invest 915.00 in Guosheng Financial Holding on September 14, 2024 and sell it today you would earn a total of 825.00 from holding Guosheng Financial Holding or generate 90.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guosheng Financial Holding vs. Peoples Insurance of
Performance |
| Timeline |
| Guosheng Financial |
| Peoples Insurance |
Guosheng Financial and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guosheng Financial and Peoples Insurance
The main advantage of trading using opposite Guosheng Financial and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guosheng Financial 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.| Guosheng Financial vs. Leyard Optoelectronic | Guosheng Financial vs. Juneyao Airlines | Guosheng Financial vs. Xinya Electronic Co | Guosheng Financial vs. Epoxy Base Electronic |
| 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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