Correlation Between Peoples Insurance and Nanjing Xinjiekou
Specify exactly 2 symbols:
By analyzing existing cross correlation between Peoples Insurance of and Nanjing Xinjiekou Department, you can compare the effects of market volatilities on Peoples Insurance and Nanjing Xinjiekou 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 Nanjing Xinjiekou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Nanjing Xinjiekou.
Diversification Opportunities for Peoples Insurance and Nanjing Xinjiekou
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Peoples and Nanjing is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Nanjing Xinjiekou Department in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Xinjiekou 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 Nanjing Xinjiekou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Xinjiekou has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Nanjing Xinjiekou go up and down completely randomly.
Pair Corralation between Peoples Insurance and Nanjing Xinjiekou
Assuming the 90 days trading horizon Peoples Insurance is expected to generate 5.83 times less return on investment than Nanjing Xinjiekou. But when comparing it to its historical volatility, Peoples Insurance of is 1.51 times less risky than Nanjing Xinjiekou. It trades about 0.05 of its potential returns per unit of risk. Nanjing Xinjiekou Department is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 658.00 in Nanjing Xinjiekou Department on September 1, 2024 and sell it today you would earn a total of 99.00 from holding Nanjing Xinjiekou Department or generate 15.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Peoples Insurance of vs. Nanjing Xinjiekou Department
Performance |
| Timeline |
| Peoples Insurance |
| Nanjing Xinjiekou |
Peoples Insurance and Nanjing Xinjiekou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Nanjing Xinjiekou
The main advantage of trading using opposite Peoples Insurance and Nanjing Xinjiekou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Nanjing Xinjiekou 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 Nanjing Xinjiekou will offset losses from the drop in Nanjing Xinjiekou's long position.| Peoples Insurance vs. Ming Yang Smart | Peoples Insurance vs. 159681 | Peoples Insurance vs. 159005 | Peoples Insurance vs. Loctek Ergonomic Technology |
| Nanjing Xinjiekou vs. Lonkey Industrial Co | Nanjing Xinjiekou vs. China Minmetals Rare | Nanjing Xinjiekou vs. Jinhe Biotechnology Co | Nanjing Xinjiekou vs. Kingclean Electric 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |