Correlation Between Peoples Insurance and Tianjin Pengling
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By analyzing existing cross correlation between Peoples Insurance of and Tianjin Pengling Rubber, you can compare the effects of market volatilities on Peoples Insurance and Tianjin Pengling 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 Tianjin Pengling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Tianjin Pengling.
Diversification Opportunities for Peoples Insurance and Tianjin Pengling
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Peoples and Tianjin is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Tianjin Pengling Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Pengling Rubber 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 Tianjin Pengling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Pengling Rubber has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Tianjin Pengling go up and down completely randomly.
Pair Corralation between Peoples Insurance and Tianjin Pengling
Assuming the 90 days trading horizon Peoples Insurance of is expected to under-perform the Tianjin Pengling. But the stock apears to be less risky and, when comparing its historical volatility, Peoples Insurance of is 1.39 times less risky than Tianjin Pengling. The stock trades about -0.21 of its potential returns per unit of risk. The Tianjin Pengling Rubber is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 477.00 in Tianjin Pengling Rubber on November 28, 2024 and sell it today you would earn a total of 37.00 from holding Tianjin Pengling Rubber or generate 7.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
Peoples Insurance of vs. Tianjin Pengling Rubber
Performance |
| Timeline |
| Peoples Insurance |
| Tianjin Pengling Rubber |
Peoples Insurance and Tianjin Pengling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Tianjin Pengling
The main advantage of trading using opposite Peoples Insurance and Tianjin Pengling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Tianjin Pengling 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 Tianjin Pengling will offset losses from the drop in Tianjin Pengling's long position.| Peoples Insurance vs. Pengxin International Mining | Peoples Insurance vs. Yunnan Copper Co | Peoples Insurance vs. Zhejiang Yongjin Metal | Peoples Insurance vs. Hubei Geoway Investment |
| Tianjin Pengling vs. Industrial and Commercial | Tianjin Pengling vs. China Construction Bank | Tianjin Pengling vs. Agricultural Bank of | Tianjin Pengling vs. Bank of China |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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