Correlation Between Peoples Insurance and Shenzhen Noposion
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By analyzing existing cross correlation between Peoples Insurance of and Shenzhen Noposion Agrochemicals, you can compare the effects of market volatilities on Peoples Insurance and Shenzhen Noposion 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 Shenzhen Noposion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Shenzhen Noposion.
Diversification Opportunities for Peoples Insurance and Shenzhen Noposion
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Peoples and Shenzhen is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Shenzhen Noposion Agrochemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Noposion 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 Shenzhen Noposion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Noposion has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Shenzhen Noposion go up and down completely randomly.
Pair Corralation between Peoples Insurance and Shenzhen Noposion
Assuming the 90 days trading horizon Peoples Insurance of is expected to under-perform the Shenzhen Noposion. But the stock apears to be less risky and, when comparing its historical volatility, Peoples Insurance of is 1.09 times less risky than Shenzhen Noposion. The stock trades about -0.03 of its potential returns per unit of risk. The Shenzhen Noposion Agrochemicals is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 961.00 in Shenzhen Noposion Agrochemicals on August 29, 2024 and sell it today you would lose (15.00) from holding Shenzhen Noposion Agrochemicals or give up 1.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peoples Insurance of vs. Shenzhen Noposion Agrochemical
Performance |
| Timeline |
| Peoples Insurance |
| Shenzhen Noposion |
Peoples Insurance and Shenzhen Noposion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Shenzhen Noposion
The main advantage of trading using opposite Peoples Insurance and Shenzhen Noposion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Shenzhen Noposion 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 Shenzhen Noposion will offset losses from the drop in Shenzhen Noposion's long position.| Peoples Insurance vs. Kweichow Moutai Co | Peoples Insurance vs. Contemporary Amperex Technology | Peoples Insurance vs. G bits Network Technology | Peoples Insurance vs. BYD Co Ltd |
| Shenzhen Noposion vs. Baoshan Iron Steel | Shenzhen Noposion vs. Shandong Gold Mining | Shenzhen Noposion vs. Rongsheng Petrochemical Co | Shenzhen Noposion vs. Inner Mongolia BaoTou |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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