Correlation Between Peoples Insurance and Gansu Huangtai
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By analyzing existing cross correlation between Peoples Insurance of and Gansu Huangtai Wine marketing, you can compare the effects of market volatilities on Peoples Insurance and Gansu Huangtai 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 Gansu Huangtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Gansu Huangtai.
Diversification Opportunities for Peoples Insurance and Gansu Huangtai
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Peoples and Gansu is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Gansu Huangtai Wine marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Huangtai Wine 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 Gansu Huangtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Huangtai Wine has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Gansu Huangtai go up and down completely randomly.
Pair Corralation between Peoples Insurance and Gansu Huangtai
Assuming the 90 days trading horizon Peoples Insurance of is expected to under-perform the Gansu Huangtai. But the stock apears to be less risky and, when comparing its historical volatility, Peoples Insurance of is 2.48 times less risky than Gansu Huangtai. The stock trades about -0.01 of its potential returns per unit of risk. The Gansu Huangtai Wine marketing is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,530 in Gansu Huangtai Wine marketing on October 30, 2024 and sell it today you would lose (54.00) from holding Gansu Huangtai Wine marketing or give up 3.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peoples Insurance of vs. Gansu Huangtai Wine marketing
Performance |
| Timeline |
| Peoples Insurance |
| Gansu Huangtai Wine |
Peoples Insurance and Gansu Huangtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Gansu Huangtai
The main advantage of trading using opposite Peoples Insurance and Gansu Huangtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Gansu Huangtai 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 Gansu Huangtai will offset losses from the drop in Gansu Huangtai's long position.| Peoples Insurance vs. Qtone Education Group | Peoples Insurance vs. Xiamen Jihong Package | Peoples Insurance vs. Chinese Universe Publishing | Peoples Insurance vs. China Publishing Media |
| Gansu Huangtai vs. PetroChina Co Ltd | Gansu Huangtai vs. Industrial and Commercial | Gansu Huangtai vs. China Petroleum Chemical | Gansu Huangtai vs. China Construction Bank |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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