Correlation Between Peoples Insurance and GRG Banking
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By analyzing existing cross correlation between Peoples Insurance of and GRG Banking Equipment, you can compare the effects of market volatilities on Peoples Insurance and GRG Banking 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 GRG Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and GRG Banking.
Diversification Opportunities for Peoples Insurance and GRG Banking
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Peoples and GRG is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and GRG Banking Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRG Banking Equipment 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 GRG Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRG Banking Equipment has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and GRG Banking go up and down completely randomly.
Pair Corralation between Peoples Insurance and GRG Banking
Assuming the 90 days trading horizon Peoples Insurance of is expected to generate 0.74 times more return on investment than GRG Banking. However, Peoples Insurance of is 1.36 times less risky than GRG Banking. It trades about 0.07 of its potential returns per unit of risk. GRG Banking Equipment is currently generating about 0.02 per unit of risk. If you would invest 534.00 in Peoples Insurance of on August 25, 2024 and sell it today you would earn a total of 167.00 from holding Peoples Insurance of or generate 31.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peoples Insurance of vs. GRG Banking Equipment
Performance |
| Timeline |
| Peoples Insurance |
| GRG Banking Equipment |
Peoples Insurance and GRG Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and GRG Banking
The main advantage of trading using opposite Peoples Insurance and GRG Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, GRG Banking 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 GRG Banking will offset losses from the drop in GRG Banking's long position.| Peoples Insurance vs. PetroChina Co Ltd | Peoples Insurance vs. China Mobile Limited | Peoples Insurance vs. CNOOC Limited | Peoples Insurance vs. Ping An Insurance |
| GRG Banking vs. Agricultural Bank of | GRG Banking vs. Industrial and Commercial | GRG Banking vs. Bank of China | GRG Banking 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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