Correlation Between Peoples Insurance and Lecron Energy
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By analyzing existing cross correlation between Peoples Insurance of and Lecron Energy Saving, you can compare the effects of market volatilities on Peoples Insurance and Lecron Energy 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 Lecron Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Lecron Energy.
Diversification Opportunities for Peoples Insurance and Lecron Energy
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Peoples and Lecron is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Lecron Energy Saving in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lecron Energy Saving 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 Lecron Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lecron Energy Saving has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Lecron Energy go up and down completely randomly.
Pair Corralation between Peoples Insurance and Lecron Energy
Assuming the 90 days trading horizon Peoples Insurance of is expected to generate 0.41 times more return on investment than Lecron Energy. However, Peoples Insurance of is 2.41 times less risky than Lecron Energy. It trades about 0.04 of its potential returns per unit of risk. Lecron Energy Saving 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 157.00 from holding Peoples Insurance of or generate 30.91% 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. Lecron Energy Saving
Performance |
| Timeline |
| Peoples Insurance |
| Lecron Energy Saving |
Peoples Insurance and Lecron Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Lecron Energy
The main advantage of trading using opposite Peoples Insurance and Lecron Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Lecron Energy 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 Lecron Energy will offset losses from the drop in Lecron Energy's long position.| Peoples Insurance vs. Shanghai CEO Environmental | Peoples Insurance vs. AVIC Fund Management | Peoples Insurance vs. Allmed Medical Products | Peoples Insurance vs. BrightGene Bio Medical |
| Lecron Energy vs. Songz Automobile Air | Lecron Energy vs. Beijing Kingsoft Office | Lecron Energy vs. Sinomach Automobile Co | Lecron Energy vs. Haima Automobile Group |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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