Correlation Between Peoples Insurance and Inner Mongolia
Specify exactly 2 symbols:
By analyzing existing cross correlation between Peoples Insurance of and Inner Mongolia Furui, you can compare the effects of market volatilities on Peoples Insurance and Inner Mongolia 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 Inner Mongolia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Inner Mongolia.
Diversification Opportunities for Peoples Insurance and Inner Mongolia
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Peoples and Inner is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Inner Mongolia Furui in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inner Mongolia Furui 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 Inner Mongolia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inner Mongolia Furui has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Inner Mongolia go up and down completely randomly.
Pair Corralation between Peoples Insurance and Inner Mongolia
Assuming the 90 days trading horizon Peoples Insurance is expected to generate 2.56 times less return on investment than Inner Mongolia. But when comparing it to its historical volatility, Peoples Insurance of is 2.41 times less risky than Inner Mongolia. It trades about 0.05 of its potential returns per unit of risk. Inner Mongolia Furui is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,965 in Inner Mongolia Furui on September 2, 2024 and sell it today you would earn a total of 1,817 from holding Inner Mongolia Furui or generate 92.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peoples Insurance of vs. Inner Mongolia Furui
Performance |
| Timeline |
| Peoples Insurance |
| Inner Mongolia Furui |
Peoples Insurance and Inner Mongolia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Inner Mongolia
The main advantage of trading using opposite Peoples Insurance and Inner Mongolia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Inner Mongolia 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 Inner Mongolia will offset losses from the drop in Inner Mongolia's long position.| Peoples Insurance vs. Shandong Mining Machinery | Peoples Insurance vs. Shenzhen Shenbao Industrial | Peoples Insurance vs. Lonkey Industrial Co | Peoples Insurance vs. Dhc Software Co |
| Inner Mongolia vs. Peoples Insurance of | Inner Mongolia vs. Nuode Investment Co | Inner Mongolia vs. Heren Health Co | Inner Mongolia vs. Zhongshan Public Utilities |
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.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |