Correlation Between Anhui Jianghuai and Peoples Insurance
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By analyzing existing cross correlation between Anhui Jianghuai Automobile and Peoples Insurance of, you can compare the effects of market volatilities on Anhui Jianghuai 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 Anhui Jianghuai with a short position of Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and Peoples Insurance.
Diversification Opportunities for Anhui Jianghuai and Peoples Insurance
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Peoples is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile and Peoples Insurance of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance and Anhui Jianghuai 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 Anhui Jianghuai Automobile 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 Anhui Jianghuai i.e., Anhui Jianghuai and Peoples Insurance go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and Peoples Insurance
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to generate 2.1 times more return on investment than Peoples Insurance. However, Anhui Jianghuai is 2.1 times more volatile than Peoples Insurance of. It trades about 0.1 of its potential returns per unit of risk. Peoples Insurance of is currently generating about 0.09 per unit of risk. If you would invest 1,783 in Anhui Jianghuai Automobile on August 29, 2024 and sell it today you would earn a total of 1,936 from holding Anhui Jianghuai Automobile or generate 108.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Jianghuai Automobile vs. Peoples Insurance of
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| Peoples Insurance |
Anhui Jianghuai and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and Peoples Insurance
The main advantage of trading using opposite Anhui Jianghuai and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai 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.| Anhui Jianghuai vs. Agricultural Bank of | Anhui Jianghuai vs. Industrial and Commercial | Anhui Jianghuai vs. Bank of China | Anhui Jianghuai vs. China Construction Bank |
| Peoples Insurance vs. Kweichow Moutai Co | Peoples Insurance vs. Contemporary Amperex Technology | Peoples Insurance vs. G bits Network Technology | Peoples Insurance vs. BYD Co Ltd |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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