Correlation Between Peoples Insurance and Bomin Electronics
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By analyzing existing cross correlation between Peoples Insurance of and Bomin Electronics Co, you can compare the effects of market volatilities on Peoples Insurance and Bomin Electronics 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 Bomin Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Bomin Electronics.
Diversification Opportunities for Peoples Insurance and Bomin Electronics
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Peoples and Bomin is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Bomin Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bomin Electronics 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 Bomin Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bomin Electronics has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Bomin Electronics go up and down completely randomly.
Pair Corralation between Peoples Insurance and Bomin Electronics
Assuming the 90 days trading horizon Peoples Insurance of is expected to generate 0.89 times more return on investment than Bomin Electronics. However, Peoples Insurance of is 1.13 times less risky than Bomin Electronics. It trades about 0.01 of its potential returns per unit of risk. Bomin Electronics Co is currently generating about -0.01 per unit of risk. If you would invest 725.00 in Peoples Insurance of on September 3, 2024 and sell it today you would lose (1.00) from holding Peoples Insurance of or give up 0.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peoples Insurance of vs. Bomin Electronics Co
Performance |
| Timeline |
| Peoples Insurance |
| Bomin Electronics |
Peoples Insurance and Bomin Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Bomin Electronics
The main advantage of trading using opposite Peoples Insurance and Bomin Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Bomin Electronics 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 Bomin Electronics will offset losses from the drop in Bomin Electronics' long position.| Peoples Insurance vs. Bomin Electronics Co | Peoples Insurance vs. Leyard Optoelectronic | Peoples Insurance vs. Epoxy Base Electronic | Peoples Insurance vs. Renxin New Material |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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