Correlation Between Jinlong Machinery and Peoples Insurance
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By analyzing existing cross correlation between Jinlong Machinery Electronic and Peoples Insurance of, you can compare the effects of market volatilities on Jinlong Machinery 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 Jinlong Machinery with a short position of Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinlong Machinery and Peoples Insurance.
Diversification Opportunities for Jinlong Machinery and Peoples Insurance
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jinlong and Peoples is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Jinlong Machinery Electronic and Peoples Insurance of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance and Jinlong Machinery 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 Jinlong Machinery Electronic 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 Jinlong Machinery i.e., Jinlong Machinery and Peoples Insurance go up and down completely randomly.
Pair Corralation between Jinlong Machinery and Peoples Insurance
Assuming the 90 days trading horizon Jinlong Machinery Electronic is expected to under-perform the Peoples Insurance. In addition to that, Jinlong Machinery is 1.65 times more volatile than Peoples Insurance of. It trades about -0.02 of its total potential returns per unit of risk. Peoples Insurance of is currently generating about -0.01 per unit of volatility. If you would invest 720.00 in Peoples Insurance of on November 3, 2024 and sell it today you would lose (4.00) from holding Peoples Insurance of or give up 0.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinlong Machinery Electronic vs. Peoples Insurance of
Performance |
| Timeline |
| Jinlong Machinery |
| Peoples Insurance |
Jinlong Machinery and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinlong Machinery and Peoples Insurance
The main advantage of trading using opposite Jinlong Machinery and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinlong Machinery 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.| Jinlong Machinery vs. FSPG Hi Tech Co | Jinlong Machinery vs. Suzhou Weizhixiang Food | Jinlong Machinery vs. Tongyu Communication | Jinlong Machinery vs. ROPEOK Technology Group |
| Peoples Insurance vs. Tianjin Ruixin Technology | Peoples Insurance vs. UCloud Technology Co | Peoples Insurance vs. China Asset Management | Peoples Insurance vs. Iat Automobile Technology |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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