Correlation Between Peoples Insurance and Chongqing Shunbo
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By analyzing existing cross correlation between Peoples Insurance of and Chongqing Shunbo Aluminum, you can compare the effects of market volatilities on Peoples Insurance and Chongqing Shunbo 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 Chongqing Shunbo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Chongqing Shunbo.
Diversification Opportunities for Peoples Insurance and Chongqing Shunbo
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Peoples and Chongqing is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Chongqing Shunbo Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Shunbo Aluminum 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 Chongqing Shunbo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Shunbo Aluminum has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Chongqing Shunbo go up and down completely randomly.
Pair Corralation between Peoples Insurance and Chongqing Shunbo
Assuming the 90 days trading horizon Peoples Insurance of is expected to under-perform the Chongqing Shunbo. But the stock apears to be less risky and, when comparing its historical volatility, Peoples Insurance of is 1.04 times less risky than Chongqing Shunbo. The stock trades about -0.09 of its potential returns per unit of risk. The Chongqing Shunbo Aluminum is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 610.00 in Chongqing Shunbo Aluminum on August 25, 2024 and sell it today you would earn a total of 46.00 from holding Chongqing Shunbo Aluminum or generate 7.54% 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. Chongqing Shunbo Aluminum
Performance |
| Timeline |
| Peoples Insurance |
| Chongqing Shunbo Aluminum |
Peoples Insurance and Chongqing Shunbo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Chongqing Shunbo
The main advantage of trading using opposite Peoples Insurance and Chongqing Shunbo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Chongqing Shunbo 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 Chongqing Shunbo will offset losses from the drop in Chongqing Shunbo'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 |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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