Correlation Between Peoples Insurance and Pengxin International
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By analyzing existing cross correlation between Peoples Insurance of and Pengxin International Mining, you can compare the effects of market volatilities on Peoples Insurance and Pengxin International 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 Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Pengxin International.
Diversification Opportunities for Peoples Insurance and Pengxin International
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Peoples and Pengxin is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International 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 Pengxin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pengxin International has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Pengxin International go up and down completely randomly.
Pair Corralation between Peoples Insurance and Pengxin International
Assuming the 90 days trading horizon Peoples Insurance of is expected to generate 0.57 times more return on investment than Pengxin International. However, Peoples Insurance of is 1.75 times less risky than Pengxin International. It trades about 0.05 of its potential returns per unit of risk. Pengxin International Mining is currently generating about 0.01 per unit of risk. If you would invest 491.00 in Peoples Insurance of on October 29, 2024 and sell it today you would earn a total of 225.00 from holding Peoples Insurance of or generate 45.82% 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. Pengxin International Mining
Performance |
| Timeline |
| Peoples Insurance |
| Pengxin International |
Peoples Insurance and Pengxin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Pengxin International
The main advantage of trading using opposite Peoples Insurance and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Pengxin International 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 Pengxin International will offset losses from the drop in Pengxin International's long position.| Peoples Insurance vs. BeiGene | Peoples Insurance vs. Kweichow Moutai Co | Peoples Insurance vs. Beijing Roborock Technology | Peoples Insurance vs. G bits Network Technology |
| Pengxin International vs. Anhui Guofeng Plastic | Pengxin International vs. Anhui Fuhuang Steel | Pengxin International vs. Guangdong Liantai Environmental | Pengxin International vs. Western Metal Materials |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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