Correlation Between Peoples Insurance and Bus Online
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By analyzing existing cross correlation between Peoples Insurance of and Bus Online Co, you can compare the effects of market volatilities on Peoples Insurance and Bus Online 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 Bus Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Bus Online.
Diversification Opportunities for Peoples Insurance and Bus Online
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Peoples and Bus is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Bus Online Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bus Online 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 Bus Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bus Online has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Bus Online go up and down completely randomly.
Pair Corralation between Peoples Insurance and Bus Online
Assuming the 90 days trading horizon Peoples Insurance of is expected to generate 0.37 times more return on investment than Bus Online. However, Peoples Insurance of is 2.67 times less risky than Bus Online. It trades about -0.27 of its potential returns per unit of risk. Bus Online Co is currently generating about -0.28 per unit of risk. If you would invest 744.00 in Peoples Insurance of on October 15, 2024 and sell it today you would lose (72.00) from holding Peoples Insurance of or give up 9.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peoples Insurance of vs. Bus Online Co
Performance |
| Timeline |
| Peoples Insurance |
| Bus Online |
Peoples Insurance and Bus Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Bus Online
The main advantage of trading using opposite Peoples Insurance and Bus Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Bus Online 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 Bus Online will offset losses from the drop in Bus Online'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 |
| Bus Online vs. Zijin Mining Group | Bus Online vs. JCHX Mining Management | Bus Online vs. Tibet Huayu Mining | Bus Online vs. Xinjiang Baodi Mining |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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