Correlation Between Peoples Insurance and Xinjiang Tianrun
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By analyzing existing cross correlation between Peoples Insurance of and Xinjiang Tianrun Dairy, you can compare the effects of market volatilities on Peoples Insurance and Xinjiang Tianrun 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 Xinjiang Tianrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Xinjiang Tianrun.
Diversification Opportunities for Peoples Insurance and Xinjiang Tianrun
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Peoples and Xinjiang is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Xinjiang Tianrun Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianrun Dairy 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 Xinjiang Tianrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianrun Dairy has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Xinjiang Tianrun go up and down completely randomly.
Pair Corralation between Peoples Insurance and Xinjiang Tianrun
Assuming the 90 days trading horizon Peoples Insurance of is expected to generate 0.54 times more return on investment than Xinjiang Tianrun. However, Peoples Insurance of is 1.85 times less risky than Xinjiang Tianrun. It trades about -0.01 of its potential returns per unit of risk. Xinjiang Tianrun Dairy is currently generating about -0.18 per unit of risk. If you would invest 720.00 in Peoples Insurance of on November 3, 2024 and sell it today you would lose (4.00) from holding Peoples Insurance of or give up 0.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peoples Insurance of vs. Xinjiang Tianrun Dairy
Performance |
| Timeline |
| Peoples Insurance |
| Xinjiang Tianrun Dairy |
Peoples Insurance and Xinjiang Tianrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Xinjiang Tianrun
The main advantage of trading using opposite Peoples Insurance and Xinjiang Tianrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Xinjiang Tianrun 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 Xinjiang Tianrun will offset losses from the drop in Xinjiang Tianrun's long position.| Peoples Insurance vs. CIMC Vehicles Co | Peoples Insurance vs. Guocheng Mining Co | Peoples Insurance vs. Iat Automobile Technology | Peoples Insurance vs. Shengda Mining Co |
| Xinjiang Tianrun vs. Chengtun Mining Group | Xinjiang Tianrun vs. Guangdong Silvere Sci | Xinjiang Tianrun vs. China Aluminum International | Xinjiang Tianrun vs. Chenzhou Jingui Silver |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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