Correlation Between Peoples Insurance and Holitech Technology
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By analyzing existing cross correlation between Peoples Insurance of and Holitech Technology Co, you can compare the effects of market volatilities on Peoples Insurance and Holitech Technology 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 Holitech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Holitech Technology.
Diversification Opportunities for Peoples Insurance and Holitech Technology
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Peoples and Holitech is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Holitech Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holitech Technology 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 Holitech Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Holitech Technology has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Holitech Technology go up and down completely randomly.
Pair Corralation between Peoples Insurance and Holitech Technology
Assuming the 90 days trading horizon Peoples Insurance of is expected to generate 0.46 times more return on investment than Holitech Technology. However, Peoples Insurance of is 2.18 times less risky than Holitech Technology. It trades about 0.05 of its potential returns per unit of risk. Holitech Technology Co is currently generating about 0.01 per unit of risk. If you would invest 515.00 in Peoples Insurance of on September 2, 2024 and sell it today you would earn a total of 209.00 from holding Peoples Insurance of or generate 40.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Peoples Insurance of vs. Holitech Technology Co
Performance |
| Timeline |
| Peoples Insurance |
| Holitech Technology |
Peoples Insurance and Holitech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Holitech Technology
The main advantage of trading using opposite Peoples Insurance and Holitech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Holitech Technology 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 Holitech Technology will offset losses from the drop in Holitech Technology's long position.| Peoples Insurance vs. Shandong Mining Machinery | Peoples Insurance vs. Shenzhen Shenbao Industrial | Peoples Insurance vs. Lonkey Industrial Co | Peoples Insurance vs. Dhc Software Co |
| Holitech Technology vs. Cultural Investment Holdings | Holitech Technology vs. Gome Telecom Equipment | Holitech Technology vs. Bus Online Co | Holitech Technology vs. Zotye Automobile Co |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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