Correlation Between Peoples Insurance and Super Dragon
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By analyzing existing cross correlation between Peoples Insurance of and Super Dragon Engineering Plastics, you can compare the effects of market volatilities on Peoples Insurance and Super Dragon 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 Super Dragon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Super Dragon.
Diversification Opportunities for Peoples Insurance and Super Dragon
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Peoples and Super is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Super Dragon Engineering Plast in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super Dragon Enginee 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 Super Dragon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super Dragon Enginee has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Super Dragon go up and down completely randomly.
Pair Corralation between Peoples Insurance and Super Dragon
Assuming the 90 days trading horizon Peoples Insurance of is expected to under-perform the Super Dragon. But the stock apears to be less risky and, when comparing its historical volatility, Peoples Insurance of is 1.55 times less risky than Super Dragon. The stock trades about -0.05 of its potential returns per unit of risk. The Super Dragon Engineering Plastics is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,506 in Super Dragon Engineering Plastics on October 25, 2024 and sell it today you would lose (47.00) from holding Super Dragon Engineering Plastics or give up 1.34% 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. Super Dragon Engineering Plast
Performance |
| Timeline |
| Peoples Insurance |
| Super Dragon Enginee |
Peoples Insurance and Super Dragon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Super Dragon
The main advantage of trading using opposite Peoples Insurance and Super Dragon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Super Dragon 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 Super Dragon will offset losses from the drop in Super Dragon's long position.| Peoples Insurance vs. Bank of China | Peoples Insurance vs. Kweichow Moutai Co | Peoples Insurance vs. PetroChina Co Ltd | Peoples Insurance vs. Bank of Communications |
| Super Dragon vs. Kweichow Moutai Co | Super Dragon vs. Contemporary Amperex Technology | Super Dragon vs. Beijing Roborock Technology | Super Dragon vs. BYD Co Ltd |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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