Correlation Between Peoples Insurance and Malion New
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By analyzing existing cross correlation between Peoples Insurance of and Malion New Materials, you can compare the effects of market volatilities on Peoples Insurance and Malion New 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 Malion New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Malion New.
Diversification Opportunities for Peoples Insurance and Malion New
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Peoples and Malion is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Malion New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malion New Materials 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 Malion New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malion New Materials has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Malion New go up and down completely randomly.
Pair Corralation between Peoples Insurance and Malion New
Assuming the 90 days trading horizon Peoples Insurance of is expected to under-perform the Malion New. But the stock apears to be less risky and, when comparing its historical volatility, Peoples Insurance of is 1.81 times less risky than Malion New. The stock trades about -0.21 of its potential returns per unit of risk. The Malion New Materials is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 803.00 in Malion New Materials on November 28, 2024 and sell it today you would earn a total of 71.00 from holding Malion New Materials or generate 8.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peoples Insurance of vs. Malion New Materials
Performance |
| Timeline |
| Peoples Insurance |
| Malion New Materials |
Peoples Insurance and Malion New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Malion New
The main advantage of trading using opposite Peoples Insurance and Malion New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Malion New 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 Malion New will offset losses from the drop in Malion New'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 |
| Malion New vs. Zijin Mining Group | Malion New vs. Wanhua Chemical Group | Malion New vs. Baoshan Iron Steel | Malion New vs. Shandong Gold Mining |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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