Correlation Between Peoples Insurance and Hefei Metalforming
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By analyzing existing cross correlation between Peoples Insurance of and Hefei Metalforming Mach, you can compare the effects of market volatilities on Peoples Insurance and Hefei Metalforming 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 Hefei Metalforming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Hefei Metalforming.
Diversification Opportunities for Peoples Insurance and Hefei Metalforming
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Peoples and Hefei is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Hefei Metalforming Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hefei Metalforming Mach 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 Hefei Metalforming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hefei Metalforming Mach has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Hefei Metalforming go up and down completely randomly.
Pair Corralation between Peoples Insurance and Hefei Metalforming
Assuming the 90 days trading horizon Peoples Insurance is expected to generate 1.76 times less return on investment than Hefei Metalforming. But when comparing it to its historical volatility, Peoples Insurance of is 1.27 times less risky than Hefei Metalforming. It trades about 0.12 of its potential returns per unit of risk. Hefei Metalforming Mach is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 561.00 in Hefei Metalforming Mach on August 30, 2024 and sell it today you would earn a total of 209.00 from holding Hefei Metalforming Mach or generate 37.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peoples Insurance of vs. Hefei Metalforming Mach
Performance |
| Timeline |
| Peoples Insurance |
| Hefei Metalforming Mach |
Peoples Insurance and Hefei Metalforming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Hefei Metalforming
The main advantage of trading using opposite Peoples Insurance and Hefei Metalforming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Hefei Metalforming 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 Hefei Metalforming will offset losses from the drop in Hefei Metalforming's long position.| Peoples Insurance vs. Emdoor Information Co | Peoples Insurance vs. Focus Media Information | Peoples Insurance vs. Dawning Information Industry | Peoples Insurance vs. Guilin Seamild Foods |
| Hefei Metalforming vs. China Publishing Media | Hefei Metalforming vs. Will Semiconductor Co | Hefei Metalforming vs. Guangzhou Jinyi Media | Hefei Metalforming vs. Threes Company Media |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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