Correlation Between Peoples Insurance and Xilinmen Furniture
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By analyzing existing cross correlation between Peoples Insurance of and Xilinmen Furniture Co, you can compare the effects of market volatilities on Peoples Insurance and Xilinmen Furniture 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 Xilinmen Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Xilinmen Furniture.
Diversification Opportunities for Peoples Insurance and Xilinmen Furniture
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Peoples and Xilinmen is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Xilinmen Furniture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xilinmen Furniture 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 Xilinmen Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xilinmen Furniture has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Xilinmen Furniture go up and down completely randomly.
Pair Corralation between Peoples Insurance and Xilinmen Furniture
Assuming the 90 days trading horizon Peoples Insurance of is expected to generate 0.92 times more return on investment than Xilinmen Furniture. However, Peoples Insurance of is 1.09 times less risky than Xilinmen Furniture. It trades about 0.01 of its potential returns per unit of risk. Xilinmen Furniture Co is currently generating about 0.0 per unit of risk. If you would invest 725.00 in Peoples Insurance of on September 4, 2024 and sell it today you would earn a total of 1.00 from holding Peoples Insurance of or generate 0.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peoples Insurance of vs. Xilinmen Furniture Co
Performance |
| Timeline |
| Peoples Insurance |
| Xilinmen Furniture |
Peoples Insurance and Xilinmen Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Xilinmen Furniture
The main advantage of trading using opposite Peoples Insurance and Xilinmen Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Xilinmen Furniture 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 Xilinmen Furniture will offset losses from the drop in Xilinmen Furniture's long position.| Peoples Insurance vs. Chengtun Mining Group | Peoples Insurance vs. Xinjiang Baodi Mining | Peoples Insurance vs. Rising Nonferrous Metals | Peoples Insurance vs. Hubeiyichang Transportation Group |
| Xilinmen Furniture vs. Industrial and Commercial | Xilinmen Furniture vs. Agricultural Bank of | Xilinmen Furniture vs. China Construction Bank | Xilinmen Furniture vs. Bank of China |
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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