Correlation Between Peoples Insurance and JiShi Media
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By analyzing existing cross correlation between Peoples Insurance of and JiShi Media Co, you can compare the effects of market volatilities on Peoples Insurance and JiShi Media 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 JiShi Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and JiShi Media.
Diversification Opportunities for Peoples Insurance and JiShi Media
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Peoples and JiShi is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and JiShi Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JiShi 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 JiShi Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JiShi Media has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and JiShi Media go up and down completely randomly.
Pair Corralation between Peoples Insurance and JiShi Media
Assuming the 90 days trading horizon Peoples Insurance is expected to generate 1.22 times less return on investment than JiShi Media. But when comparing it to its historical volatility, Peoples Insurance of is 3.87 times less risky than JiShi Media. It trades about 0.18 of its potential returns per unit of risk. JiShi Media Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 180.00 in JiShi Media Co on September 28, 2024 and sell it today you would earn a total of 7.00 from holding JiShi Media Co or generate 3.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peoples Insurance of vs. JiShi Media Co
Performance |
| Timeline |
| Peoples Insurance |
| JiShi Media |
Peoples Insurance and JiShi Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and JiShi Media
The main advantage of trading using opposite Peoples Insurance and JiShi Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, JiShi Media 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 JiShi Media will offset losses from the drop in JiShi Media's long position.| Peoples Insurance vs. Industrial and Commercial | Peoples Insurance vs. Agricultural Bank of | Peoples Insurance vs. China Construction Bank | Peoples Insurance vs. Bank of China |
| JiShi Media vs. Industrial and Commercial | JiShi Media vs. Kweichow Moutai Co | JiShi Media vs. Agricultural Bank of | JiShi Media vs. China Mobile Limited |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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