Correlation Between Peoples Insurance and Agricultural Bank
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By analyzing existing cross correlation between Peoples Insurance of and Agricultural Bank of, you can compare the effects of market volatilities on Peoples Insurance and Agricultural Bank 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 Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Agricultural Bank.
Diversification Opportunities for Peoples Insurance and Agricultural Bank
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Peoples and Agricultural is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank 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 Agricultural Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agricultural Bank has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Agricultural Bank go up and down completely randomly.
Pair Corralation between Peoples Insurance and Agricultural Bank
Assuming the 90 days trading horizon Peoples Insurance is expected to generate 1.54 times less return on investment than Agricultural Bank. In addition to that, Peoples Insurance is 1.33 times more volatile than Agricultural Bank of. It trades about 0.05 of its total potential returns per unit of risk. Agricultural Bank of is currently generating about 0.1 per unit of volatility. If you would invest 270.00 in Agricultural Bank of on September 3, 2024 and sell it today you would earn a total of 211.00 from holding Agricultural Bank of or generate 78.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peoples Insurance of vs. Agricultural Bank of
Performance |
| Timeline |
| Peoples Insurance |
| Agricultural Bank |
Peoples Insurance and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Agricultural Bank
The main advantage of trading using opposite Peoples Insurance and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Agricultural Bank 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 Agricultural Bank will offset losses from the drop in Agricultural Bank's long position.| Peoples Insurance vs. Bomin Electronics Co | Peoples Insurance vs. Leyard Optoelectronic | Peoples Insurance vs. Epoxy Base Electronic | Peoples Insurance vs. Renxin New Material |
| Agricultural Bank vs. Kunwu Jiuding Investment | Agricultural Bank vs. Harbin Hatou Investment | Agricultural Bank vs. Dazhong Transportation Group | Agricultural Bank vs. Metro Investment Development |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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