Correlation Between Lecron Energy and Peoples Insurance
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By analyzing existing cross correlation between Lecron Energy Saving and Peoples Insurance of, you can compare the effects of market volatilities on Lecron Energy 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 Lecron Energy with a short position of Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lecron Energy and Peoples Insurance.
Diversification Opportunities for Lecron Energy and Peoples Insurance
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lecron and Peoples is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Lecron Energy Saving and Peoples Insurance of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance and Lecron Energy 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 Lecron Energy Saving 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 Lecron Energy i.e., Lecron Energy and Peoples Insurance go up and down completely randomly.
Pair Corralation between Lecron Energy and Peoples Insurance
Assuming the 90 days trading horizon Lecron Energy Saving is expected to under-perform the Peoples Insurance. In addition to that, Lecron Energy is 2.41 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 0.04 per unit of volatility. If you would invest 508.00 in Peoples Insurance of on October 16, 2024 and sell it today you would earn a total of 157.00 from holding Peoples Insurance of or generate 30.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lecron Energy Saving vs. Peoples Insurance of
Performance |
| Timeline |
| Lecron Energy Saving |
| Peoples Insurance |
Lecron Energy and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lecron Energy and Peoples Insurance
The main advantage of trading using opposite Lecron Energy and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lecron Energy 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.| Lecron Energy vs. Songz Automobile Air | Lecron Energy vs. Beijing Kingsoft Office | Lecron Energy vs. Sinomach Automobile Co | Lecron Energy vs. Haima Automobile Group |
| Peoples Insurance vs. Shanghai CEO Environmental | Peoples Insurance vs. AVIC Fund Management | Peoples Insurance vs. Allmed Medical Products | Peoples Insurance vs. BrightGene Bio Medical |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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