Correlation Between Peoples Insurance and DO Home
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By analyzing existing cross correlation between Peoples Insurance of and DO Home Collection, you can compare the effects of market volatilities on Peoples Insurance and DO Home 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 DO Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and DO Home.
Diversification Opportunities for Peoples Insurance and DO Home
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Peoples and 002798 is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and DO Home Collection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DO Home Collection 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 DO Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DO Home Collection has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and DO Home go up and down completely randomly.
Pair Corralation between Peoples Insurance and DO Home
Assuming the 90 days trading horizon Peoples Insurance is expected to generate 18.54 times less return on investment than DO Home. But when comparing it to its historical volatility, Peoples Insurance of is 1.33 times less risky than DO Home. It trades about 0.01 of its potential returns per unit of risk. DO Home Collection is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 400.00 in DO Home Collection on September 4, 2024 and sell it today you would earn a total of 51.00 from holding DO Home Collection or generate 12.75% 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. DO Home Collection
Performance |
| Timeline |
| Peoples Insurance |
| DO Home Collection |
Peoples Insurance and DO Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and DO Home
The main advantage of trading using opposite Peoples Insurance and DO Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, DO Home 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 DO Home will offset losses from the drop in DO Home's long position.| Peoples Insurance vs. Chengtun Mining Group | Peoples Insurance vs. Xinjiang Baodi Mining | Peoples Insurance vs. Rising Nonferrous Metals | Peoples Insurance vs. Hubeiyichang Transportation Group |
| DO Home vs. Agricultural Bank of | DO Home vs. Industrial and Commercial | DO Home vs. Bank of China | DO Home vs. China Construction Bank |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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