Correlation Between Peoples Insurance and AVIC Fund
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By analyzing existing cross correlation between Peoples Insurance of and AVIC Fund Management, you can compare the effects of market volatilities on Peoples Insurance and AVIC Fund 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 AVIC Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and AVIC Fund.
Diversification Opportunities for Peoples Insurance and AVIC Fund
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Peoples and AVIC is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and AVIC Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVIC Fund Management 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 AVIC Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVIC Fund Management has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and AVIC Fund go up and down completely randomly.
Pair Corralation between Peoples Insurance and AVIC Fund
Assuming the 90 days trading horizon Peoples Insurance of is expected to generate 3.08 times more return on investment than AVIC Fund. However, Peoples Insurance is 3.08 times more volatile than AVIC Fund Management. It trades about 0.02 of its potential returns per unit of risk. AVIC Fund Management is currently generating about -0.16 per unit of risk. If you would invest 693.00 in Peoples Insurance of on November 9, 2024 and sell it today you would earn a total of 2.00 from holding Peoples Insurance of or generate 0.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peoples Insurance of vs. AVIC Fund Management
Performance |
| Timeline |
| Peoples Insurance |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| AVIC Fund Management |
Risk-Adjusted Performance
Solid
Weak | Strong |
Peoples Insurance and AVIC Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and AVIC Fund
The main advantage of trading using opposite Peoples Insurance and AVIC Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, AVIC Fund 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 AVIC Fund will offset losses from the drop in AVIC Fund's long position.The idea behind Peoples Insurance of and AVIC Fund Management pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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