Correlation Between Peoples Insurance and 37 Interactive
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By analyzing existing cross correlation between Peoples Insurance of and 37 Interactive Entertainment, you can compare the effects of market volatilities on Peoples Insurance and 37 Interactive 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 37 Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and 37 Interactive.
Diversification Opportunities for Peoples Insurance and 37 Interactive
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Peoples and 002555 is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and 37 Interactive Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 37 Interactive Enter 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 37 Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 37 Interactive Enter has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and 37 Interactive go up and down completely randomly.
Pair Corralation between Peoples Insurance and 37 Interactive
Assuming the 90 days trading horizon Peoples Insurance of is expected to generate 0.54 times more return on investment than 37 Interactive. However, Peoples Insurance of is 1.86 times less risky than 37 Interactive. It trades about 0.04 of its potential returns per unit of risk. 37 Interactive Entertainment is currently generating about 0.02 per unit of risk. If you would invest 536.00 in Peoples Insurance of on August 27, 2024 and sell it today you would earn a total of 165.00 from holding Peoples Insurance of or generate 30.78% 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. 37 Interactive Entertainment
Performance |
| Timeline |
| Peoples Insurance |
| 37 Interactive Enter |
Peoples Insurance and 37 Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and 37 Interactive
The main advantage of trading using opposite Peoples Insurance and 37 Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, 37 Interactive 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 37 Interactive will offset losses from the drop in 37 Interactive's long position.| Peoples Insurance vs. PetroChina Co Ltd | Peoples Insurance vs. China Mobile Limited | Peoples Insurance vs. CNOOC Limited | Peoples Insurance vs. Ping An Insurance |
| 37 Interactive vs. Zhengzhou Qianweiyangchu Food | 37 Interactive vs. Suzhou Weizhixiang Food | 37 Interactive vs. Nanjing Putian Telecommunications | 37 Interactive vs. Ligao Foods CoLtd |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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