Correlation Between Peoples Insurance and ZYF Lopsking
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By analyzing existing cross correlation between Peoples Insurance of and ZYF Lopsking Aluminum, you can compare the effects of market volatilities on Peoples Insurance and ZYF Lopsking 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 ZYF Lopsking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and ZYF Lopsking.
Diversification Opportunities for Peoples Insurance and ZYF Lopsking
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Peoples and ZYF is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and ZYF Lopsking Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZYF Lopsking Aluminum 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 ZYF Lopsking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZYF Lopsking Aluminum has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and ZYF Lopsking go up and down completely randomly.
Pair Corralation between Peoples Insurance and ZYF Lopsking
Assuming the 90 days trading horizon Peoples Insurance of is expected to generate 0.91 times more return on investment than ZYF Lopsking. However, Peoples Insurance of is 1.1 times less risky than ZYF Lopsking. It trades about 0.13 of its potential returns per unit of risk. ZYF Lopsking Aluminum is currently generating about 0.01 per unit of risk. If you would invest 532.00 in Peoples Insurance of on September 1, 2024 and sell it today you would earn a total of 192.00 from holding Peoples Insurance of or generate 36.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peoples Insurance of vs. ZYF Lopsking Aluminum
Performance |
| Timeline |
| Peoples Insurance |
| ZYF Lopsking Aluminum |
Peoples Insurance and ZYF Lopsking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and ZYF Lopsking
The main advantage of trading using opposite Peoples Insurance and ZYF Lopsking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, ZYF Lopsking 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 ZYF Lopsking will offset losses from the drop in ZYF Lopsking's long position.| Peoples Insurance vs. Ming Yang Smart | Peoples Insurance vs. 159681 | Peoples Insurance vs. 159005 | Peoples Insurance vs. Loctek Ergonomic Technology |
| ZYF Lopsking vs. GreenTech Environmental Co | ZYF Lopsking vs. Shenzhen MYS Environmental | ZYF Lopsking vs. Dalian Zeus Entertainment | ZYF Lopsking vs. Lingyuan Iron Steel |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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