Correlation Between Peoples Insurance and Chongqing Zhifei
Specify exactly 2 symbols:
By analyzing existing cross correlation between Peoples Insurance of and Chongqing Zhifei Bio, you can compare the effects of market volatilities on Peoples Insurance and Chongqing Zhifei 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 Zhifei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Chongqing Zhifei.
Diversification Opportunities for Peoples Insurance and Chongqing Zhifei
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Peoples and Chongqing is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Chongqing Zhifei Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Zhifei Bio 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 Zhifei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Zhifei Bio has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Chongqing Zhifei go up and down completely randomly.
Pair Corralation between Peoples Insurance and Chongqing Zhifei
Assuming the 90 days trading horizon Peoples Insurance of is expected to generate 0.57 times more return on investment than Chongqing Zhifei. However, Peoples Insurance of is 1.75 times less risky than Chongqing Zhifei. It trades about 0.05 of its potential returns per unit of risk. Chongqing Zhifei Bio is currently generating about -0.03 per unit of risk. If you would invest 517.00 in Peoples Insurance of on September 4, 2024 and sell it today you would earn a total of 209.00 from holding Peoples Insurance of or generate 40.43% 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 Zhifei Bio
Performance |
| Timeline |
| Peoples Insurance |
| Chongqing Zhifei Bio |
Peoples Insurance and Chongqing Zhifei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Chongqing Zhifei
The main advantage of trading using opposite Peoples Insurance and Chongqing Zhifei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Chongqing Zhifei 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 Zhifei will offset losses from the drop in Chongqing Zhifei's long position.| Peoples Insurance vs. Chengtun Mining Group | Peoples Insurance vs. Xinjiang Baodi Mining | Peoples Insurance vs. Rising Nonferrous Metals | Peoples Insurance vs. Hubeiyichang Transportation Group |
| Chongqing Zhifei vs. Juewei Food Co | Chongqing Zhifei vs. Andon Health Co | Chongqing Zhifei vs. HaiXin Foods Co | Chongqing Zhifei vs. Easyhome New Retail |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |