Correlation Between Nanjing Putian and Peoples Insurance
Specify exactly 2 symbols:
By analyzing existing cross correlation between Nanjing Putian Telecommunications and Peoples Insurance of, you can compare the effects of market volatilities on Nanjing Putian 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 Nanjing Putian with a short position of Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Peoples Insurance.
Diversification Opportunities for Nanjing Putian and Peoples Insurance
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanjing and Peoples is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Peoples Insurance of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance and Nanjing Putian 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 Nanjing Putian Telecommunications 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 Nanjing Putian i.e., Nanjing Putian and Peoples Insurance go up and down completely randomly.
Pair Corralation between Nanjing Putian and Peoples Insurance
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.95 times more return on investment than Peoples Insurance. However, Nanjing Putian is 1.95 times more volatile than Peoples Insurance of. It trades about 0.03 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 344.00 in Nanjing Putian Telecommunications on September 3, 2024 and sell it today you would earn a total of 116.00 from holding Nanjing Putian Telecommunications or generate 33.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Peoples Insurance of
Performance |
| Timeline |
| Nanjing Putian Telec |
| Peoples Insurance |
Nanjing Putian and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Peoples Insurance
The main advantage of trading using opposite Nanjing Putian and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian 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.| Nanjing Putian vs. Agricultural Bank of | Nanjing Putian vs. China Construction Bank | Nanjing Putian vs. Postal Savings Bank | Nanjing Putian vs. Bank of Communications |
| Peoples Insurance vs. Bomin Electronics Co | Peoples Insurance vs. Leyard Optoelectronic | Peoples Insurance vs. Epoxy Base Electronic | Peoples Insurance vs. Renxin New Material |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |