Correlation Between Peoples Insurance and Xiamen Jihong
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By analyzing existing cross correlation between Peoples Insurance of and Xiamen Jihong Package, you can compare the effects of market volatilities on Peoples Insurance and Xiamen Jihong 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 Xiamen Jihong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Xiamen Jihong.
Diversification Opportunities for Peoples Insurance and Xiamen Jihong
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Peoples and Xiamen is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Xiamen Jihong Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Jihong Package 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 Xiamen Jihong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Jihong Package has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Xiamen Jihong go up and down completely randomly.
Pair Corralation between Peoples Insurance and Xiamen Jihong
Assuming the 90 days trading horizon Peoples Insurance of is expected to under-perform the Xiamen Jihong. But the stock apears to be less risky and, when comparing its historical volatility, Peoples Insurance of is 1.51 times less risky than Xiamen Jihong. The stock trades about -0.09 of its potential returns per unit of risk. The Xiamen Jihong Package is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 1,229 in Xiamen Jihong Package on August 25, 2024 and sell it today you would earn a total of 292.00 from holding Xiamen Jihong Package or generate 23.76% 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. Xiamen Jihong Package
Performance |
| Timeline |
| Peoples Insurance |
| Xiamen Jihong Package |
Peoples Insurance and Xiamen Jihong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Xiamen Jihong
The main advantage of trading using opposite Peoples Insurance and Xiamen Jihong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Xiamen Jihong 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 Xiamen Jihong will offset losses from the drop in Xiamen Jihong's long position.| Peoples Insurance vs. Chongqing Shunbo Aluminum | Peoples Insurance vs. Sino Platinum Metals Co | Peoples Insurance vs. Western Metal Materials | Peoples Insurance vs. Hefei Metalforming Mach |
| Xiamen Jihong vs. Namchow Food Group | Xiamen Jihong vs. Peoples Insurance of | Xiamen Jihong vs. Zhongyin Babi Food | Xiamen Jihong vs. HaiXin Foods 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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