Correlation Between Peoples Insurance and Shanghai Ziyan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Peoples Insurance of and Shanghai Ziyan Foods, you can compare the effects of market volatilities on Peoples Insurance and Shanghai Ziyan 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 Shanghai Ziyan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Shanghai Ziyan.
Diversification Opportunities for Peoples Insurance and Shanghai Ziyan
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Peoples and Shanghai is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Shanghai Ziyan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Ziyan Foods 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 Shanghai Ziyan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Ziyan Foods has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Shanghai Ziyan go up and down completely randomly.
Pair Corralation between Peoples Insurance and Shanghai Ziyan
Assuming the 90 days trading horizon Peoples Insurance of is expected to under-perform the Shanghai Ziyan. But the stock apears to be less risky and, when comparing its historical volatility, Peoples Insurance of is 2.82 times less risky than Shanghai Ziyan. The stock trades about -0.28 of its potential returns per unit of risk. The Shanghai Ziyan Foods is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 1,914 in Shanghai Ziyan Foods on October 14, 2024 and sell it today you would lose (204.00) from holding Shanghai Ziyan Foods or give up 10.66% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Peoples Insurance of vs. Shanghai Ziyan Foods
Performance |
Timeline |
Peoples Insurance |
Shanghai Ziyan Foods |
Peoples Insurance and Shanghai Ziyan Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Peoples Insurance and Shanghai Ziyan
The main advantage of trading using opposite Peoples Insurance and Shanghai Ziyan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Shanghai Ziyan 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 Shanghai Ziyan will offset losses from the drop in Shanghai Ziyan's long position.Peoples Insurance vs. Western Metal Materials | Peoples Insurance vs. Thinkon Semiconductor Jinzhou | Peoples Insurance vs. Nexchip Semiconductor Corp | Peoples Insurance vs. Union Semiconductor Co |
Shanghai Ziyan vs. Xiamen Bank Co | Shanghai Ziyan vs. Inspur Software Co | Shanghai Ziyan vs. China Everbright Bank | Shanghai Ziyan vs. Jiangsu Financial Leasing |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |