Correlation Between Peoples Insurance and Tianshan Aluminum
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By analyzing existing cross correlation between Peoples Insurance of and Tianshan Aluminum Group, you can compare the effects of market volatilities on Peoples Insurance and Tianshan Aluminum 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 Tianshan Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Tianshan Aluminum.
Diversification Opportunities for Peoples Insurance and Tianshan Aluminum
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Peoples and Tianshan is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Tianshan Aluminum Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianshan 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 Tianshan Aluminum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianshan Aluminum has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Tianshan Aluminum go up and down completely randomly.
Pair Corralation between Peoples Insurance and Tianshan Aluminum
Assuming the 90 days trading horizon Peoples Insurance of is expected to generate 0.77 times more return on investment than Tianshan Aluminum. However, Peoples Insurance of is 1.3 times less risky than Tianshan Aluminum. It trades about 0.13 of its potential returns per unit of risk. Tianshan Aluminum Group 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peoples Insurance of vs. Tianshan Aluminum Group
Performance |
| Timeline |
| Peoples Insurance |
| Tianshan Aluminum |
Peoples Insurance and Tianshan Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Tianshan Aluminum
The main advantage of trading using opposite Peoples Insurance and Tianshan Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Tianshan Aluminum 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 Tianshan Aluminum will offset losses from the drop in Tianshan Aluminum's long position.| Peoples Insurance vs. Ming Yang Smart | Peoples Insurance vs. 159681 | Peoples Insurance vs. 159005 | Peoples Insurance vs. Loctek Ergonomic Technology |
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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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