Correlation Between Xinjiang Baodi and Peoples Insurance
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Peoples Insurance of, you can compare the effects of market volatilities on Xinjiang Baodi 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 Xinjiang Baodi with a short position of Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Peoples Insurance.
Diversification Opportunities for Xinjiang Baodi and Peoples Insurance
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinjiang and Peoples is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Peoples Insurance of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance and Xinjiang Baodi 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 Xinjiang Baodi Mining 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 Xinjiang Baodi i.e., Xinjiang Baodi and Peoples Insurance go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Peoples Insurance
Assuming the 90 days trading horizon Xinjiang Baodi is expected to generate 1.56 times less return on investment than Peoples Insurance. In addition to that, Xinjiang Baodi is 1.65 times more volatile than Peoples Insurance of. It trades about 0.02 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 | 89.5% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Peoples Insurance of
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Peoples Insurance |
Xinjiang Baodi and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Peoples Insurance
The main advantage of trading using opposite Xinjiang Baodi and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi 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.| Xinjiang Baodi vs. Zijin Mining Group | Xinjiang Baodi vs. Wanhua Chemical Group | Xinjiang Baodi vs. Baoshan Iron Steel | Xinjiang Baodi 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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