Correlation Between Peoples Insurance and Hua Xia
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By analyzing existing cross correlation between Peoples Insurance of and Hua Xia Bank, you can compare the effects of market volatilities on Peoples Insurance and Hua Xia 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 Hua Xia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Hua Xia.
Diversification Opportunities for Peoples Insurance and Hua Xia
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Peoples and Hua is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Hua Xia Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hua Xia Bank 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 Hua Xia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hua Xia Bank has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Hua Xia go up and down completely randomly.
Pair Corralation between Peoples Insurance and Hua Xia
Assuming the 90 days trading horizon Peoples Insurance of is expected to generate 1.18 times more return on investment than Hua Xia. However, Peoples Insurance is 1.18 times more volatile than Hua Xia Bank. It trades about 0.07 of its potential returns per unit of risk. Hua Xia Bank is currently generating about 0.07 per unit of risk. If you would invest 534.00 in Peoples Insurance of on August 25, 2024 and sell it today you would earn a total of 167.00 from holding Peoples Insurance of or generate 31.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peoples Insurance of vs. Hua Xia Bank
Performance |
| Timeline |
| Peoples Insurance |
| Hua Xia Bank |
Peoples Insurance and Hua Xia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Hua Xia
The main advantage of trading using opposite Peoples Insurance and Hua Xia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Hua Xia 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 Hua Xia will offset losses from the drop in Hua Xia's long position.| Peoples Insurance vs. PetroChina Co Ltd | Peoples Insurance vs. China Mobile Limited | Peoples Insurance vs. CNOOC Limited | Peoples Insurance vs. Ping An Insurance |
| Hua Xia vs. Agricultural Bank of | Hua Xia vs. Industrial and Commercial | Hua Xia vs. Bank of China | Hua Xia vs. China Construction Bank |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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