Correlation Between NBTM New and Peoples Insurance
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By analyzing existing cross correlation between NBTM New Materials and Peoples Insurance of, you can compare the effects of market volatilities on NBTM New 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 NBTM New with a short position of Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of NBTM New and Peoples Insurance.
Diversification Opportunities for NBTM New and Peoples Insurance
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NBTM and Peoples is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding NBTM New Materials and Peoples Insurance of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance and NBTM New 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 NBTM New Materials 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 NBTM New i.e., NBTM New and Peoples Insurance go up and down completely randomly.
Pair Corralation between NBTM New and Peoples Insurance
Assuming the 90 days trading horizon NBTM New Materials is expected to generate 1.56 times more return on investment than Peoples Insurance. However, NBTM New is 1.56 times more volatile than Peoples Insurance of. It trades about 0.06 of its potential returns per unit of risk. Peoples Insurance of is currently generating about 0.08 per unit of risk. If you would invest 1,391 in NBTM New Materials on October 18, 2024 and sell it today you would earn a total of 266.00 from holding NBTM New Materials or generate 19.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NBTM New Materials vs. Peoples Insurance of
Performance |
| Timeline |
| NBTM New Materials |
| Peoples Insurance |
NBTM New and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NBTM New and Peoples Insurance
The main advantage of trading using opposite NBTM New and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NBTM New 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.| NBTM New vs. Peoples Insurance of | NBTM New vs. Shenwu Energy Saving | NBTM New vs. Financial Street Holdings | NBTM New vs. Qilu Bank Co |
| Peoples Insurance vs. Southern PublishingMedia Co | Peoples Insurance vs. Changjiang Publishing Media | Peoples Insurance vs. Guangdong Jinma Entertainment | Peoples Insurance vs. Tieling Newcity Investment |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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