Correlation Between Chinese Universe and Peoples Insurance
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chinese Universe Publishing and Peoples Insurance of, you can compare the effects of market volatilities on Chinese Universe 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 Chinese Universe with a short position of Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chinese Universe and Peoples Insurance.
Diversification Opportunities for Chinese Universe and Peoples Insurance
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chinese and Peoples is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Chinese Universe Publishing and Peoples Insurance of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance and Chinese Universe 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 Chinese Universe Publishing 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 Chinese Universe i.e., Chinese Universe and Peoples Insurance go up and down completely randomly.
Pair Corralation between Chinese Universe and Peoples Insurance
Assuming the 90 days trading horizon Chinese Universe Publishing is expected to under-perform the Peoples Insurance. But the stock apears to be less risky and, when comparing its historical volatility, Chinese Universe Publishing is 1.02 times less risky than Peoples Insurance. The stock trades about -0.21 of its potential returns per unit of risk. The Peoples Insurance of is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 691.00 in Peoples Insurance of on November 7, 2024 and sell it today you would earn a total of 25.00 from holding Peoples Insurance of or generate 3.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chinese Universe Publishing vs. Peoples Insurance of
Performance |
| Timeline |
| Chinese Universe Pub |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Peoples Insurance |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Chinese Universe and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chinese Universe and Peoples Insurance
The main advantage of trading using opposite Chinese Universe and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chinese Universe 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.The idea behind Chinese Universe Publishing and Peoples Insurance of pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Stocks Directory Find actively traded stocks across global markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |