Correlation Between Peoples Insurance and Shantui Construction
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By analyzing existing cross correlation between Peoples Insurance of and Shantui Construction Machinery, you can compare the effects of market volatilities on Peoples Insurance and Shantui Construction 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 Shantui Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Shantui Construction.
Diversification Opportunities for Peoples Insurance and Shantui Construction
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Peoples and Shantui is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Shantui Construction Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shantui Construction 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 Shantui Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shantui Construction has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Shantui Construction go up and down completely randomly.
Pair Corralation between Peoples Insurance and Shantui Construction
Assuming the 90 days trading horizon Peoples Insurance is expected to generate 2.86 times less return on investment than Shantui Construction. But when comparing it to its historical volatility, Peoples Insurance of is 1.59 times less risky than Shantui Construction. It trades about 0.04 of its potential returns per unit of risk. Shantui Construction Machinery is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 424.00 in Shantui Construction Machinery on October 14, 2024 and sell it today you would earn a total of 544.00 from holding Shantui Construction Machinery or generate 128.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peoples Insurance of vs. Shantui Construction Machinery
Performance |
| Timeline |
| Peoples Insurance |
| Shantui Construction |
Peoples Insurance and Shantui Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Shantui Construction
The main advantage of trading using opposite Peoples Insurance and Shantui Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Shantui Construction 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 Shantui Construction will offset losses from the drop in Shantui Construction'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 |
| Shantui Construction vs. Guangzhou Haige Communications | Shantui Construction vs. Peoples Insurance of | Shantui Construction vs. Wuhan Yangtze Communication | Shantui Construction vs. China Mobile Limited |
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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