Correlation Between Peoples Insurance and Namchow Food
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By analyzing existing cross correlation between Peoples Insurance of and Namchow Food Group, you can compare the effects of market volatilities on Peoples Insurance and Namchow Food 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 Namchow Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Namchow Food.
Diversification Opportunities for Peoples Insurance and Namchow Food
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Peoples and Namchow is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Namchow Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Namchow Food Group 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 Namchow Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Namchow Food Group has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Namchow Food go up and down completely randomly.
Pair Corralation between Peoples Insurance and Namchow Food
Assuming the 90 days trading horizon Peoples Insurance of is expected to generate 1.12 times more return on investment than Namchow Food. However, Peoples Insurance is 1.12 times more volatile than Namchow Food Group. It trades about 0.11 of its potential returns per unit of risk. Namchow Food Group is currently generating about 0.03 per unit of risk. If you would invest 536.00 in Peoples Insurance of on August 28, 2024 and sell it today you would earn a total of 164.00 from holding Peoples Insurance of or generate 30.6% 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. Namchow Food Group
Performance |
| Timeline |
| Peoples Insurance |
| Namchow Food Group |
Peoples Insurance and Namchow Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Namchow Food
The main advantage of trading using opposite Peoples Insurance and Namchow Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Namchow Food 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 Namchow Food will offset losses from the drop in Namchow Food's long position.| Peoples Insurance vs. PetroChina Co Ltd | Peoples Insurance vs. China Mobile Limited | Peoples Insurance vs. CNOOC Limited | Peoples Insurance vs. Ping An Insurance |
| Namchow Food vs. China Petroleum Chemical | Namchow Food vs. PetroChina Co Ltd | Namchow Food vs. China State Construction | Namchow Food vs. China Railway Group |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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