Correlation Between Peoples Insurance and Gan Yuan
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By analyzing existing cross correlation between Peoples Insurance of and Gan Yuan Foods, you can compare the effects of market volatilities on Peoples Insurance and Gan Yuan 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 Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Gan Yuan.
Diversification Opportunities for Peoples Insurance and Gan Yuan
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Peoples and Gan is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan Foods 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 Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Gan Yuan go up and down completely randomly.
Pair Corralation between Peoples Insurance and Gan Yuan
Assuming the 90 days trading horizon Peoples Insurance of is expected to generate 0.7 times more return on investment than Gan Yuan. However, Peoples Insurance of is 1.42 times less risky than Gan Yuan. It trades about 0.05 of its potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.02 per unit of risk. If you would invest 519.00 in Peoples Insurance of on September 3, 2024 and sell it today you would earn a total of 205.00 from holding Peoples Insurance of or generate 39.5% 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. Gan Yuan Foods
Performance |
| Timeline |
| Peoples Insurance |
| Gan Yuan Foods |
Peoples Insurance and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Gan Yuan
The main advantage of trading using opposite Peoples Insurance and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan's long position.| Peoples Insurance vs. Bomin Electronics Co | Peoples Insurance vs. Leyard Optoelectronic | Peoples Insurance vs. Epoxy Base Electronic | Peoples Insurance vs. Renxin New Material |
| Gan Yuan vs. Beijing Wantai Biological | Gan Yuan vs. Aluminum Corp of | Gan Yuan vs. COL Digital Publishing | Gan Yuan vs. Shaanxi Meineng Clean |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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