Correlation Between Peoples Insurance and Aba Chemicals
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By analyzing existing cross correlation between Peoples Insurance of and Aba Chemicals Corp, you can compare the effects of market volatilities on Peoples Insurance and Aba Chemicals 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 Aba Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Aba Chemicals.
Diversification Opportunities for Peoples Insurance and Aba Chemicals
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Peoples and Aba is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Aba Chemicals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aba Chemicals Corp 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 Aba Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aba Chemicals Corp has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Aba Chemicals go up and down completely randomly.
Pair Corralation between Peoples Insurance and Aba Chemicals
Assuming the 90 days trading horizon Peoples Insurance of is expected to generate 0.51 times more return on investment than Aba Chemicals. However, Peoples Insurance of is 1.97 times less risky than Aba Chemicals. It trades about 0.04 of its potential returns per unit of risk. Aba Chemicals Corp is currently generating about -0.02 per unit of risk. If you would invest 508.00 in Peoples Insurance of on October 16, 2024 and sell it today you would earn a total of 178.00 from holding Peoples Insurance of or generate 35.04% 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. Aba Chemicals Corp
Performance |
| Timeline |
| Peoples Insurance |
| Aba Chemicals Corp |
Peoples Insurance and Aba Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Aba Chemicals
The main advantage of trading using opposite Peoples Insurance and Aba Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Aba Chemicals 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 Aba Chemicals will offset losses from the drop in Aba Chemicals' long position.| Peoples Insurance vs. Runjian Communication Co | Peoples Insurance vs. Dazhong Transportation Group | Peoples Insurance vs. Shaanxi Broadcast TV | Peoples Insurance vs. Fujian Newland Computer |
| Aba Chemicals vs. Sportsoul Co Ltd | Aba Chemicals vs. Beijing Enlight Media | Aba Chemicals vs. King Strong New Material | Aba Chemicals vs. Hangzhou Gaoxin Rubber |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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