Correlation Between Peoples Insurance and Chongqing Sulian
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By analyzing existing cross correlation between Peoples Insurance of and Chongqing Sulian Plastic, you can compare the effects of market volatilities on Peoples Insurance and Chongqing Sulian 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 Chongqing Sulian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Chongqing Sulian.
Diversification Opportunities for Peoples Insurance and Chongqing Sulian
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Peoples and Chongqing is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Chongqing Sulian Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Sulian Plastic 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 Chongqing Sulian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Sulian Plastic has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Chongqing Sulian go up and down completely randomly.
Pair Corralation between Peoples Insurance and Chongqing Sulian
Assuming the 90 days trading horizon Peoples Insurance of is expected to generate 0.79 times more return on investment than Chongqing Sulian. However, Peoples Insurance of is 1.26 times less risky than Chongqing Sulian. It trades about -0.3 of its potential returns per unit of risk. Chongqing Sulian Plastic is currently generating about -0.38 per unit of risk. If you would invest 744.00 in Peoples Insurance of on October 16, 2024 and sell it today you would lose (79.00) from holding Peoples Insurance of or give up 10.62% 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. Chongqing Sulian Plastic
Performance |
| Timeline |
| Peoples Insurance |
| Chongqing Sulian Plastic |
Peoples Insurance and Chongqing Sulian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Chongqing Sulian
The main advantage of trading using opposite Peoples Insurance and Chongqing Sulian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Chongqing Sulian 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 Chongqing Sulian will offset losses from the drop in Chongqing Sulian's long position.| Peoples Insurance vs. Runjian Communication Co | Peoples Insurance vs. Dazhong Transportation Group | Peoples Insurance vs. Shaanxi Broadcast TV | Peoples Insurance vs. Fujian Newland Computer |
| Chongqing Sulian vs. Wuhan Hvsen Biotechnology | Chongqing Sulian vs. Goodwill E Health | Chongqing Sulian vs. Jiangsu GDK Biotechnology | Chongqing Sulian vs. Sanbo Hospital Management |
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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