Correlation Between Peoples Insurance and Nanxing Furniture
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By analyzing existing cross correlation between Peoples Insurance of and Nanxing Furniture Machinery, you can compare the effects of market volatilities on Peoples Insurance and Nanxing Furniture 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 Nanxing Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Nanxing Furniture.
Diversification Opportunities for Peoples Insurance and Nanxing Furniture
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Peoples and Nanxing is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Nanxing Furniture Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanxing Furniture 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 Nanxing Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanxing Furniture has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Nanxing Furniture go up and down completely randomly.
Pair Corralation between Peoples Insurance and Nanxing Furniture
Assuming the 90 days trading horizon Peoples Insurance of is expected to generate 0.6 times more return on investment than Nanxing Furniture. However, Peoples Insurance of is 1.67 times less risky than Nanxing Furniture. It trades about -0.21 of its potential returns per unit of risk. Nanxing Furniture Machinery is currently generating about -0.19 per unit of risk. If you would invest 754.00 in Peoples Insurance of on October 11, 2024 and sell it today you would lose (67.00) from holding Peoples Insurance of or give up 8.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peoples Insurance of vs. Nanxing Furniture Machinery
Performance |
| Timeline |
| Peoples Insurance |
| Nanxing Furniture |
Peoples Insurance and Nanxing Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Nanxing Furniture
The main advantage of trading using opposite Peoples Insurance and Nanxing Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Nanxing Furniture 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 Nanxing Furniture will offset losses from the drop in Nanxing Furniture's long position.| Peoples Insurance vs. Jiangsu Jinling Sports | Peoples Insurance vs. Zhejiang JIULI Hi tech | Peoples Insurance vs. Jiangxi Hengda Hi Tech | Peoples Insurance vs. Fujian Newland Computer |
| Nanxing Furniture vs. Sportsoul Co Ltd | Nanxing Furniture vs. Servyou Software Group | Nanxing Furniture vs. Peoples Insurance of | Nanxing Furniture vs. Fujian Boss Software |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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