Correlation Between Peoples Insurance and Shenwu Energy
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By analyzing existing cross correlation between Peoples Insurance of and Shenwu Energy Saving, you can compare the effects of market volatilities on Peoples Insurance and Shenwu Energy 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 Shenwu Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Shenwu Energy.
Diversification Opportunities for Peoples Insurance and Shenwu Energy
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Peoples and Shenwu is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Shenwu Energy Saving in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenwu Energy Saving 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 Shenwu Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenwu Energy Saving has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Shenwu Energy go up and down completely randomly.
Pair Corralation between Peoples Insurance and Shenwu Energy
Assuming the 90 days trading horizon Peoples Insurance of is expected to generate 0.44 times more return on investment than Shenwu Energy. However, Peoples Insurance of is 2.28 times less risky than Shenwu Energy. It trades about 0.08 of its potential returns per unit of risk. Shenwu Energy Saving is currently generating about 0.02 per unit of risk. If you would invest 513.00 in Peoples Insurance of on November 3, 2024 and sell it today you would earn a total of 203.00 from holding Peoples Insurance of or generate 39.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peoples Insurance of vs. Shenwu Energy Saving
Performance |
| Timeline |
| Peoples Insurance |
| Shenwu Energy Saving |
Peoples Insurance and Shenwu Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Shenwu Energy
The main advantage of trading using opposite Peoples Insurance and Shenwu Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Shenwu Energy 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 Shenwu Energy will offset losses from the drop in Shenwu Energy's long position.| Peoples Insurance vs. CIMC Vehicles Co | Peoples Insurance vs. Guocheng Mining Co | Peoples Insurance vs. Iat Automobile Technology | Peoples Insurance vs. Shengda Mining Co |
| Shenwu Energy vs. Tjk Machinery Tianjin | Shenwu Energy vs. Sinomach General Machinery | Shenwu Energy vs. Fujian Boss Software | Shenwu Energy vs. Masterwork Machinery |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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