Correlation Between Peoples Insurance and Hunan Investment
Specify exactly 2 symbols:
By analyzing existing cross correlation between Peoples Insurance of and Hunan Investment Group, you can compare the effects of market volatilities on Peoples Insurance and Hunan Investment 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 Peoples Insurance with a short position of Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Hunan Investment.
Diversification Opportunities for Peoples Insurance and Hunan Investment
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Peoples and Hunan is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment and Peoples Insurance 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 Peoples Insurance of are associated (or correlated) with Hunan Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Investment has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Hunan Investment go up and down completely randomly.
Pair Corralation between Peoples Insurance and Hunan Investment
Assuming the 90 days trading horizon Peoples Insurance of is expected to generate 0.77 times more return on investment than Hunan Investment. However, Peoples Insurance of is 1.3 times less risky than Hunan Investment. It trades about -0.28 of its potential returns per unit of risk. Hunan Investment Group is currently generating about -0.43 per unit of risk. If you would invest 747.00 in Peoples Insurance of on October 14, 2024 and sell it today you would lose (75.00) from holding Peoples Insurance of or give up 10.04% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Peoples Insurance of vs. Hunan Investment Group
Performance |
Timeline |
Peoples Insurance |
Hunan Investment |
Peoples Insurance and Hunan Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Peoples Insurance and Hunan Investment
The main advantage of trading using opposite Peoples Insurance and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Hunan Investment 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 Hunan Investment will offset losses from the drop in Hunan Investment's long position.Peoples Insurance vs. Jiugui Liquor Co | Peoples Insurance vs. Jinhui Liquor Co | Peoples Insurance vs. Fuda Alloy Materials | Peoples Insurance vs. Citic Offshore Helicopter |
Hunan Investment vs. Duzhe Publishing Media | Hunan Investment vs. Mango Excellent Media | Hunan Investment vs. Xiangyang Automobile Bearing | Hunan Investment vs. Fibocom Wireless |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |