Correlation Between Jiangsu Financial and Peoples Insurance
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By analyzing existing cross correlation between Jiangsu Financial Leasing and Peoples Insurance of, you can compare the effects of market volatilities on Jiangsu Financial 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 Jiangsu Financial with a short position of Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Peoples Insurance.
Diversification Opportunities for Jiangsu Financial and Peoples Insurance
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Peoples is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and Peoples Insurance of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance and Jiangsu Financial 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 Jiangsu Financial Leasing 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 Jiangsu Financial i.e., Jiangsu Financial and Peoples Insurance go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Peoples Insurance
Assuming the 90 days trading horizon Jiangsu Financial is expected to generate 1.91 times less return on investment than Peoples Insurance. But when comparing it to its historical volatility, Jiangsu Financial Leasing is 1.16 times less risky than Peoples Insurance. It trades about 0.08 of its potential returns per unit of risk. Peoples Insurance of is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 582.00 in Peoples Insurance of on August 29, 2024 and sell it today you would earn a total of 129.00 from holding Peoples Insurance of or generate 22.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Financial Leasing vs. Peoples Insurance of
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Peoples Insurance |
Jiangsu Financial and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Peoples Insurance
The main advantage of trading using opposite Jiangsu Financial and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial 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.| Jiangsu Financial vs. Kweichow Moutai Co | Jiangsu Financial vs. Contemporary Amperex Technology | Jiangsu Financial vs. G bits Network Technology | Jiangsu Financial vs. BYD Co Ltd |
| 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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