Correlation Between Peoples Insurance and Haima Automobile
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By analyzing existing cross correlation between Peoples Insurance of and Haima Automobile Group, you can compare the effects of market volatilities on Peoples Insurance and Haima Automobile 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 Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Haima Automobile.
Diversification Opportunities for Peoples Insurance and Haima Automobile
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Peoples and Haima is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile 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 Haima Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haima Automobile has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Haima Automobile go up and down completely randomly.
Pair Corralation between Peoples Insurance and Haima Automobile
Assuming the 90 days trading horizon Peoples Insurance of is expected to generate 0.49 times more return on investment than Haima Automobile. However, Peoples Insurance of is 2.04 times less risky than Haima Automobile. It trades about 0.06 of its potential returns per unit of risk. Haima Automobile Group is currently generating about 0.01 per unit of risk. If you would invest 515.00 in Peoples Insurance of on September 30, 2024 and sell it today you would earn a total of 252.00 from holding Peoples Insurance of or generate 48.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peoples Insurance of vs. Haima Automobile Group
Performance |
| Timeline |
| Peoples Insurance |
| Haima Automobile |
Peoples Insurance and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Haima Automobile
The main advantage of trading using opposite Peoples Insurance and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Haima Automobile 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 Haima Automobile will offset losses from the drop in Haima Automobile's long position.| Peoples Insurance vs. Industrial and Commercial | Peoples Insurance vs. Agricultural Bank of | Peoples Insurance vs. China Construction Bank | Peoples Insurance vs. Bank of China |
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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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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