Correlation Between Peoples Insurance and Nanjing Putian
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By analyzing existing cross correlation between Peoples Insurance of and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Peoples Insurance and Nanjing Putian 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 Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Nanjing Putian.
Diversification Opportunities for Peoples Insurance and Nanjing Putian
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Peoples and Nanjing is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Nanjing Putian Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Putian Telec 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 Nanjing Putian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Putian Telec has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Nanjing Putian go up and down completely randomly.
Pair Corralation between Peoples Insurance and Nanjing Putian
Assuming the 90 days trading horizon Peoples Insurance of is expected to under-perform the Nanjing Putian. But the stock apears to be less risky and, when comparing its historical volatility, Peoples Insurance of is 1.72 times less risky than Nanjing Putian. The stock trades about -0.18 of its potential returns per unit of risk. The Nanjing Putian Telecommunications is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 389.00 in Nanjing Putian Telecommunications on December 1, 2024 and sell it today you would lose (6.00) from holding Nanjing Putian Telecommunications or give up 1.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peoples Insurance of vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Peoples Insurance |
| Nanjing Putian Telec |
Peoples Insurance and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Nanjing Putian
The main advantage of trading using opposite Peoples Insurance and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Nanjing Putian 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 Nanjing Putian will offset losses from the drop in Nanjing Putian's long position.| Peoples Insurance vs. Hua Xia Bank | Peoples Insurance vs. Emdoor Information Co | Peoples Insurance vs. Westone Information Industry | Peoples Insurance vs. Northking Information Technology |
| Nanjing Putian vs. Xiangyu Medical Co | Nanjing Putian vs. Cofoe Medical Technology | Nanjing Putian vs. Beijing Balance Medical | Nanjing Putian vs. Kontour Medical Technology |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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