Correlation Between Peoples Insurance and Guangzhou Zhujiang
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By analyzing existing cross correlation between Peoples Insurance of and Guangzhou Zhujiang Brewery, you can compare the effects of market volatilities on Peoples Insurance and Guangzhou Zhujiang 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 Guangzhou Zhujiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Guangzhou Zhujiang.
Diversification Opportunities for Peoples Insurance and Guangzhou Zhujiang
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Peoples and Guangzhou is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Guangzhou Zhujiang Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Zhujiang 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 Guangzhou Zhujiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Zhujiang has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Guangzhou Zhujiang go up and down completely randomly.
Pair Corralation between Peoples Insurance and Guangzhou Zhujiang
Assuming the 90 days trading horizon Peoples Insurance of is expected to generate 1.51 times more return on investment than Guangzhou Zhujiang. However, Peoples Insurance is 1.51 times more volatile than Guangzhou Zhujiang Brewery. It trades about -0.01 of its potential returns per unit of risk. Guangzhou Zhujiang Brewery is currently generating about -0.31 per unit of risk. If you would invest 720.00 in Peoples Insurance of on November 3, 2024 and sell it today you would lose (4.00) from holding Peoples Insurance of or give up 0.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peoples Insurance of vs. Guangzhou Zhujiang Brewery
Performance |
| Timeline |
| Peoples Insurance |
| Guangzhou Zhujiang |
Peoples Insurance and Guangzhou Zhujiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Guangzhou Zhujiang
The main advantage of trading using opposite Peoples Insurance and Guangzhou Zhujiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Guangzhou Zhujiang 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 Guangzhou Zhujiang will offset losses from the drop in Guangzhou Zhujiang's long position.| Peoples Insurance vs. CIMC Vehicles Co | Peoples Insurance vs. Guocheng Mining Co | Peoples Insurance vs. Iat Automobile Technology | Peoples Insurance vs. Shengda Mining Co |
| Guangzhou Zhujiang vs. Dongfeng Automobile Co | Guangzhou Zhujiang vs. Fibocom Wireless | Guangzhou Zhujiang vs. Quectel Wireless Solutions | Guangzhou Zhujiang vs. Wintao Communications 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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