Correlation Between AVIC Fund and Peoples Insurance
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By analyzing existing cross correlation between AVIC Fund Management and Peoples Insurance of, you can compare the effects of market volatilities on AVIC Fund 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 AVIC Fund with a short position of Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Fund and Peoples Insurance.
Diversification Opportunities for AVIC Fund and Peoples Insurance
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AVIC and Peoples is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Fund Management and Peoples Insurance of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance and AVIC Fund 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 AVIC Fund Management 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 AVIC Fund i.e., AVIC Fund and Peoples Insurance go up and down completely randomly.
Pair Corralation between AVIC Fund and Peoples Insurance
Assuming the 90 days trading horizon AVIC Fund is expected to generate 1.38 times less return on investment than Peoples Insurance. But when comparing it to its historical volatility, AVIC Fund Management is 2.44 times less risky than Peoples Insurance. It trades about 0.07 of its potential returns per unit of risk. Peoples Insurance of is currently generating about 0.04 of returns per unit of risk over similar time horizon. 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 Against |
| Strength | Insignificant |
| Accuracy | 91.21% |
| Values | Daily Returns |
AVIC Fund Management vs. Peoples Insurance of
Performance |
| Timeline |
| AVIC Fund Management |
| Peoples Insurance |
AVIC Fund and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVIC Fund and Peoples Insurance
The main advantage of trading using opposite AVIC Fund and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Fund 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.| AVIC Fund vs. Jiajia Food Group | AVIC Fund vs. Jinxiandai Information Industry | AVIC Fund vs. Hygon Information Technology | AVIC Fund vs. Sharetronic Data Technology |
| 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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