Correlation Between Peoples Insurance and Zhongyin Babi
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By analyzing existing cross correlation between Peoples Insurance of and Zhongyin Babi Food, you can compare the effects of market volatilities on Peoples Insurance and Zhongyin Babi 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 Zhongyin Babi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Zhongyin Babi.
Diversification Opportunities for Peoples Insurance and Zhongyin Babi
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Peoples and Zhongyin is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Zhongyin Babi Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongyin Babi Food 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 Zhongyin Babi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongyin Babi Food has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Zhongyin Babi go up and down completely randomly.
Pair Corralation between Peoples Insurance and Zhongyin Babi
Assuming the 90 days trading horizon Peoples Insurance of is expected to generate 0.94 times more return on investment than Zhongyin Babi. However, Peoples Insurance of is 1.07 times less risky than Zhongyin Babi. It trades about 0.1 of its potential returns per unit of risk. Zhongyin Babi Food is currently generating about 0.0 per unit of risk. If you would invest 551.00 in Peoples Insurance of on August 25, 2024 and sell it today you would earn a total of 150.00 from holding Peoples Insurance of or generate 27.22% 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. Zhongyin Babi Food
Performance |
| Timeline |
| Peoples Insurance |
| Zhongyin Babi Food |
Peoples Insurance and Zhongyin Babi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Zhongyin Babi
The main advantage of trading using opposite Peoples Insurance and Zhongyin Babi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Zhongyin Babi 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 Zhongyin Babi will offset losses from the drop in Zhongyin Babi's long position.| Peoples Insurance vs. Chongqing Shunbo Aluminum | Peoples Insurance vs. Sino Platinum Metals Co | Peoples Insurance vs. Western Metal Materials | Peoples Insurance vs. Hefei Metalforming Mach |
| Zhongyin Babi vs. Aluminum Corp of | Zhongyin Babi vs. COL Digital Publishing | Zhongyin Babi vs. Shaanxi Meineng Clean | Zhongyin Babi vs. Gansu Huangtai Wine marketing |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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