Correlation Between Peoples Insurance and Tonghua Grape
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By analyzing existing cross correlation between Peoples Insurance of and Tonghua Grape Wine, you can compare the effects of market volatilities on Peoples Insurance and Tonghua Grape 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 Tonghua Grape. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Tonghua Grape.
Diversification Opportunities for Peoples Insurance and Tonghua Grape
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Peoples and Tonghua is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Tonghua Grape Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tonghua Grape Wine 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 Tonghua Grape. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tonghua Grape Wine has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Tonghua Grape go up and down completely randomly.
Pair Corralation between Peoples Insurance and Tonghua Grape
Assuming the 90 days trading horizon Peoples Insurance of is expected to generate 0.72 times more return on investment than Tonghua Grape. However, Peoples Insurance of is 1.39 times less risky than Tonghua Grape. It trades about 0.04 of its potential returns per unit of risk. Tonghua Grape Wine is currently generating about -0.03 per unit of risk. If you would invest 508.00 in Peoples Insurance of on October 16, 2024 and sell it today you would earn a total of 157.00 from holding Peoples Insurance of or generate 30.91% 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. Tonghua Grape Wine
Performance |
| Timeline |
| Peoples Insurance |
| Tonghua Grape Wine |
Peoples Insurance and Tonghua Grape Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Tonghua Grape
The main advantage of trading using opposite Peoples Insurance and Tonghua Grape positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Tonghua Grape 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 Tonghua Grape will offset losses from the drop in Tonghua Grape's long position.| Peoples Insurance vs. Shanghai CEO Environmental | Peoples Insurance vs. AVIC Fund Management | Peoples Insurance vs. Allmed Medical Products | Peoples Insurance vs. BrightGene Bio Medical |
| Tonghua Grape vs. Peoples Insurance of | Tonghua Grape vs. Guangdong Jingyi Metal | Tonghua Grape vs. China Minmetals Rare | Tonghua Grape vs. Hengli Industrial Development |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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