Correlation Between Guangdong Wens and Peoples Insurance
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By analyzing existing cross correlation between Guangdong Wens Foodstuff and Peoples Insurance of, you can compare the effects of market volatilities on Guangdong Wens 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 Guangdong Wens with a short position of Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Wens and Peoples Insurance.
Diversification Opportunities for Guangdong Wens and Peoples Insurance
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and Peoples is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Wens Foodstuff and Peoples Insurance of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance and Guangdong Wens 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 Guangdong Wens Foodstuff 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 Guangdong Wens i.e., Guangdong Wens and Peoples Insurance go up and down completely randomly.
Pair Corralation between Guangdong Wens and Peoples Insurance
Assuming the 90 days trading horizon Guangdong Wens Foodstuff is expected to generate 0.53 times more return on investment than Peoples Insurance. However, Guangdong Wens Foodstuff is 1.88 times less risky than Peoples Insurance. It trades about -0.24 of its potential returns per unit of risk. Peoples Insurance of is currently generating about -0.14 per unit of risk. If you would invest 1,696 in Guangdong Wens Foodstuff on October 28, 2024 and sell it today you would lose (96.00) from holding Guangdong Wens Foodstuff or give up 5.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Wens Foodstuff vs. Peoples Insurance of
Performance |
| Timeline |
| Guangdong Wens Foodstuff |
| Peoples Insurance |
Guangdong Wens and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Wens and Peoples Insurance
The main advantage of trading using opposite Guangdong Wens and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Wens 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.| Guangdong Wens vs. Luyin Investment Group | Guangdong Wens vs. Cultural Investment Holdings | Guangdong Wens vs. China Asset Management | Guangdong Wens vs. Jointo Energy Investment |
| Peoples Insurance vs. BeiGene | Peoples Insurance vs. Kweichow Moutai Co | Peoples Insurance vs. Beijing Roborock Technology | Peoples Insurance vs. G bits Network 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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