Correlation Between Peoples Insurance and Zhejiang Daily
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By analyzing existing cross correlation between Peoples Insurance of and Zhejiang Daily Media, you can compare the effects of market volatilities on Peoples Insurance and Zhejiang Daily 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 Zhejiang Daily. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Zhejiang Daily.
Diversification Opportunities for Peoples Insurance and Zhejiang Daily
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Peoples and Zhejiang is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Zhejiang Daily Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Daily Media 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 Zhejiang Daily. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Daily Media has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Zhejiang Daily go up and down completely randomly.
Pair Corralation between Peoples Insurance and Zhejiang Daily
Assuming the 90 days trading horizon Peoples Insurance of is expected to generate 0.71 times more return on investment than Zhejiang Daily. However, Peoples Insurance of is 1.41 times less risky than Zhejiang Daily. It trades about -0.24 of its potential returns per unit of risk. Zhejiang Daily Media is currently generating about -0.17 per unit of risk. If you would invest 745.00 in Peoples Insurance of on October 18, 2024 and sell it today you would lose (71.00) from holding Peoples Insurance of or give up 9.53% 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. Zhejiang Daily Media
Performance |
| Timeline |
| Peoples Insurance |
| Zhejiang Daily Media |
Peoples Insurance and Zhejiang Daily Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Zhejiang Daily
The main advantage of trading using opposite Peoples Insurance and Zhejiang Daily positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Zhejiang Daily 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 Zhejiang Daily will offset losses from the drop in Zhejiang Daily's long position.| Peoples Insurance vs. Jinsanjiang Silicon Material | Peoples Insurance vs. Zhongzhu Medical Holdings | Peoples Insurance vs. Xiangyu Medical Co | Peoples Insurance vs. Nanjing Vishee Medical |
| Zhejiang Daily vs. Jiangsu Hoperun Software | Zhejiang Daily vs. Servyou Software Group | Zhejiang Daily vs. Heilongjiang Transport Development | Zhejiang Daily vs. Thunder Software Technology |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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