Correlation Between Peoples Insurance and Bank of China
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By analyzing existing cross correlation between Peoples Insurance of and Bank of China, you can compare the effects of market volatilities on Peoples Insurance and Bank of China 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 Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Bank of China.
Diversification Opportunities for Peoples Insurance and Bank of China
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Peoples and Bank is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Bank of China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of China 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 Bank of China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of China has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Bank of China go up and down completely randomly.
Pair Corralation between Peoples Insurance and Bank of China
Assuming the 90 days trading horizon Peoples Insurance of is expected to generate 1.65 times more return on investment than Bank of China. However, Peoples Insurance is 1.65 times more volatile than Bank of China. It trades about 0.09 of its potential returns per unit of risk. Bank of China is currently generating about 0.09 per unit of risk. If you would invest 548.00 in Peoples Insurance of on October 22, 2024 and sell it today you would earn a total of 136.00 from holding Peoples Insurance of or generate 24.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peoples Insurance of vs. Bank of China
Performance |
| Timeline |
| Peoples Insurance |
| Bank of China |
Peoples Insurance and Bank of China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Bank of China
The main advantage of trading using opposite Peoples Insurance and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Bank of China 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 Bank of China will offset losses from the drop in Bank of China's long position.| Peoples Insurance vs. Guotai Epoint Software | Peoples Insurance vs. Jinlong Machinery Electronic | Peoples Insurance vs. Linewell Software Co | Peoples Insurance vs. Shantui Construction Machinery |
| Bank of China vs. Beijing Sanyuan Foods | Bank of China vs. Jiangsu Financial Leasing | Bank of China vs. Qilu Bank Co | Bank of China vs. Peoples Insurance of |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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