Correlation Between Peoples Insurance and Road Environment
Specify exactly 2 symbols:
By analyzing existing cross correlation between Peoples Insurance of and Road Environment Technology, you can compare the effects of market volatilities on Peoples Insurance and Road Environment 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 Road Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Road Environment.
Diversification Opportunities for Peoples Insurance and Road Environment
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Peoples and Road is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Road Environment Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Road Environment Tec 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 Road Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Road Environment Tec has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Road Environment go up and down completely randomly.
Pair Corralation between Peoples Insurance and Road Environment
Assuming the 90 days trading horizon Peoples Insurance of is expected to generate 0.6 times more return on investment than Road Environment. However, Peoples Insurance of is 1.66 times less risky than Road Environment. It trades about 0.09 of its potential returns per unit of risk. Road Environment Technology is currently generating about -0.1 per unit of risk. If you would invest 501.00 in Peoples Insurance of on August 25, 2024 and sell it today you would earn a total of 200.00 from holding Peoples Insurance of or generate 39.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peoples Insurance of vs. Road Environment Technology
Performance |
| Timeline |
| Peoples Insurance |
| Road Environment Tec |
Peoples Insurance and Road Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Road Environment
The main advantage of trading using opposite Peoples Insurance and Road Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Road Environment 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 Road Environment will offset losses from the drop in Road Environment'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 |
| Road Environment vs. Cambricon Technologies Corp | Road Environment vs. Loongson Technology Corp | Road Environment vs. Chongqing Road Bridge | Road Environment vs. Shenzhen Fortune Trend |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |