Correlation Between Peoples Insurance and Suzhou Xingye
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By analyzing existing cross correlation between Peoples Insurance of and Suzhou Xingye Material, you can compare the effects of market volatilities on Peoples Insurance and Suzhou Xingye 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 Suzhou Xingye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Suzhou Xingye.
Diversification Opportunities for Peoples Insurance and Suzhou Xingye
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Peoples and Suzhou is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Suzhou Xingye Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Xingye Material 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 Suzhou Xingye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Xingye Material has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Suzhou Xingye go up and down completely randomly.
Pair Corralation between Peoples Insurance and Suzhou Xingye
Assuming the 90 days trading horizon Peoples Insurance of is expected to under-perform the Suzhou Xingye. But the stock apears to be less risky and, when comparing its historical volatility, Peoples Insurance of is 1.89 times less risky than Suzhou Xingye. The stock trades about -0.05 of its potential returns per unit of risk. The Suzhou Xingye Material is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 836.00 in Suzhou Xingye Material on October 25, 2024 and sell it today you would earn a total of 364.00 from holding Suzhou Xingye Material or generate 43.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peoples Insurance of vs. Suzhou Xingye Material
Performance |
| Timeline |
| Peoples Insurance |
| Suzhou Xingye Material |
Peoples Insurance and Suzhou Xingye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Suzhou Xingye
The main advantage of trading using opposite Peoples Insurance and Suzhou Xingye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Suzhou Xingye 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 Suzhou Xingye will offset losses from the drop in Suzhou Xingye's long position.| Peoples Insurance vs. Bank of China | Peoples Insurance vs. Kweichow Moutai Co | Peoples Insurance vs. PetroChina Co Ltd | Peoples Insurance vs. Bank of Communications |
| Suzhou Xingye vs. Zijin Mining Group | Suzhou Xingye vs. Wanhua Chemical Group | Suzhou Xingye vs. Baoshan Iron Steel | Suzhou Xingye vs. Rongsheng Petrochemical Co |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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