Correlation Between Peoples Insurance and Sichuan Yahua
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By analyzing existing cross correlation between Peoples Insurance of and Sichuan Yahua Industrial, you can compare the effects of market volatilities on Peoples Insurance and Sichuan Yahua 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 Sichuan Yahua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Sichuan Yahua.
Diversification Opportunities for Peoples Insurance and Sichuan Yahua
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Peoples and Sichuan is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Sichuan Yahua Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Yahua Industrial 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 Sichuan Yahua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Yahua Industrial has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Sichuan Yahua go up and down completely randomly.
Pair Corralation between Peoples Insurance and Sichuan Yahua
Assuming the 90 days trading horizon Peoples Insurance is expected to generate 8.63 times less return on investment than Sichuan Yahua. But when comparing it to its historical volatility, Peoples Insurance of is 1.31 times less risky than Sichuan Yahua. It trades about 0.04 of its potential returns per unit of risk. Sichuan Yahua Industrial is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 1,063 in Sichuan Yahua Industrial on September 5, 2024 and sell it today you would earn a total of 181.00 from holding Sichuan Yahua Industrial or generate 17.03% 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. Sichuan Yahua Industrial
Performance |
| Timeline |
| Peoples Insurance |
| Sichuan Yahua Industrial |
Peoples Insurance and Sichuan Yahua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Sichuan Yahua
The main advantage of trading using opposite Peoples Insurance and Sichuan Yahua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Sichuan Yahua 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 Sichuan Yahua will offset losses from the drop in Sichuan Yahua's long position.| Peoples Insurance vs. Cultural Investment Holdings | Peoples Insurance vs. Gome Telecom Equipment | Peoples Insurance vs. Bus Online Co | Peoples Insurance vs. Holitech Technology Co |
| Sichuan Yahua vs. Zijin Mining Group | Sichuan Yahua vs. Wanhua Chemical Group | Sichuan Yahua vs. Baoshan Iron Steel | Sichuan Yahua vs. Rongsheng Petrochemical 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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