Correlation Between Peoples Insurance and Guangzhou Haozhi
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By analyzing existing cross correlation between Peoples Insurance of and Guangzhou Haozhi Industrial, you can compare the effects of market volatilities on Peoples Insurance and Guangzhou Haozhi 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 Guangzhou Haozhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Guangzhou Haozhi.
Diversification Opportunities for Peoples Insurance and Guangzhou Haozhi
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Peoples and Guangzhou is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Guangzhou Haozhi Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haozhi Ind 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 Guangzhou Haozhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haozhi Ind has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Guangzhou Haozhi go up and down completely randomly.
Pair Corralation between Peoples Insurance and Guangzhou Haozhi
Assuming the 90 days trading horizon Peoples Insurance of is expected to generate 0.46 times more return on investment than Guangzhou Haozhi. However, Peoples Insurance of is 2.16 times less risky than Guangzhou Haozhi. It trades about -0.28 of its potential returns per unit of risk. Guangzhou Haozhi Industrial is currently generating about -0.25 per unit of risk. If you would invest 747.00 in Peoples Insurance of on October 14, 2024 and sell it today you would lose (75.00) from holding Peoples Insurance of or give up 10.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peoples Insurance of vs. Guangzhou Haozhi Industrial
Performance |
| Timeline |
| Peoples Insurance |
| Guangzhou Haozhi Ind |
Peoples Insurance and Guangzhou Haozhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Guangzhou Haozhi
The main advantage of trading using opposite Peoples Insurance and Guangzhou Haozhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Guangzhou Haozhi 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 Guangzhou Haozhi will offset losses from the drop in Guangzhou Haozhi's long position.| Peoples Insurance vs. Jiugui Liquor Co | Peoples Insurance vs. Jinhui Liquor Co | Peoples Insurance vs. Fuda Alloy Materials | Peoples Insurance vs. Citic Offshore Helicopter |
| Guangzhou Haozhi vs. Beijing Yanjing Brewery | Guangzhou Haozhi vs. Anhui Transport Consulting | Guangzhou Haozhi vs. Chengdu Xinzhu RoadBridge | Guangzhou Haozhi vs. Shaanxi Construction Machinery |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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