Correlation Between Peoples Insurance and Shanghai Broadband
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By analyzing existing cross correlation between Peoples Insurance of and Shanghai Broadband Technology, you can compare the effects of market volatilities on Peoples Insurance and Shanghai Broadband 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 Shanghai Broadband. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Shanghai Broadband.
Diversification Opportunities for Peoples Insurance and Shanghai Broadband
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Peoples and Shanghai is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Shanghai Broadband Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Broadband 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 Shanghai Broadband. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Broadband has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Shanghai Broadband go up and down completely randomly.
Pair Corralation between Peoples Insurance and Shanghai Broadband
Assuming the 90 days trading horizon Peoples Insurance of is expected to generate 0.72 times more return on investment than Shanghai Broadband. However, Peoples Insurance of is 1.38 times less risky than Shanghai Broadband. It trades about -0.19 of its potential returns per unit of risk. Shanghai Broadband Technology is currently generating about -0.15 per unit of risk. If you would invest 781.00 in Peoples Insurance of on October 30, 2024 and sell it today you would lose (65.00) from holding Peoples Insurance of or give up 8.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peoples Insurance of vs. Shanghai Broadband Technology
Performance |
| Timeline |
| Peoples Insurance |
| Shanghai Broadband |
Peoples Insurance and Shanghai Broadband Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Shanghai Broadband
The main advantage of trading using opposite Peoples Insurance and Shanghai Broadband positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Shanghai Broadband 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 Shanghai Broadband will offset losses from the drop in Shanghai Broadband's long position.| Peoples Insurance vs. Qtone Education Group | Peoples Insurance vs. Xiamen Jihong Package | Peoples Insurance vs. Chinese Universe Publishing | Peoples Insurance vs. China Publishing Media |
| Shanghai Broadband vs. Lotus Health Group | Shanghai Broadband vs. Impulse Qingdao Health | Shanghai Broadband vs. Dezhan HealthCare Co | Shanghai Broadband vs. Healthcare Co |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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