Correlation Between Chengtun Mining and Peoples Insurance
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By analyzing existing cross correlation between Chengtun Mining Group and Peoples Insurance of, you can compare the effects of market volatilities on Chengtun Mining 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 Chengtun Mining with a short position of Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Peoples Insurance.
Diversification Opportunities for Chengtun Mining and Peoples Insurance
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chengtun and Peoples is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Peoples Insurance of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance and Chengtun Mining 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 Chengtun Mining Group 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 Chengtun Mining i.e., Chengtun Mining and Peoples Insurance go up and down completely randomly.
Pair Corralation between Chengtun Mining and Peoples Insurance
Assuming the 90 days trading horizon Chengtun Mining Group is expected to under-perform the Peoples Insurance. In addition to that, Chengtun Mining is 1.47 times more volatile than Peoples Insurance of. It trades about 0.0 of its total potential returns per unit of risk. Peoples Insurance of is currently generating about 0.06 per unit of volatility. If you would invest 502.00 in Peoples Insurance of on September 12, 2024 and sell it today you would earn a total of 252.00 from holding Peoples Insurance of or generate 50.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. Peoples Insurance of
Performance |
| Timeline |
| Chengtun Mining Group |
| Peoples Insurance |
Chengtun Mining and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Peoples Insurance
The main advantage of trading using opposite Chengtun Mining and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining 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.| Chengtun Mining vs. Zijin Mining Group | Chengtun Mining vs. Wanhua Chemical Group | Chengtun Mining vs. Baoshan Iron Steel | Chengtun Mining vs. Rongsheng Petrochemical Co |
| Peoples Insurance vs. China Petroleum Chemical | Peoples Insurance vs. PetroChina Co Ltd | Peoples Insurance vs. China Mobile Limited | Peoples Insurance vs. Industrial and Commercial |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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