Correlation Between Peoples Insurance and Zhuhai Comleader
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By analyzing existing cross correlation between Peoples Insurance of and Zhuhai Comleader Information, you can compare the effects of market volatilities on Peoples Insurance and Zhuhai Comleader 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 Zhuhai Comleader. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Zhuhai Comleader.
Diversification Opportunities for Peoples Insurance and Zhuhai Comleader
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Peoples and Zhuhai is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Zhuhai Comleader Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhuhai Comleader Inf 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 Zhuhai Comleader. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhuhai Comleader Inf has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Zhuhai Comleader go up and down completely randomly.
Pair Corralation between Peoples Insurance and Zhuhai Comleader
Assuming the 90 days trading horizon Peoples Insurance of is expected to generate 0.48 times more return on investment than Zhuhai Comleader. However, Peoples Insurance of is 2.1 times less risky than Zhuhai Comleader. It trades about 0.06 of its potential returns per unit of risk. Zhuhai Comleader Information is currently generating about 0.01 per unit of risk. If you would invest 571.00 in Peoples Insurance of on September 4, 2024 and sell it today you would earn a total of 155.00 from holding Peoples Insurance of or generate 27.15% 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. Zhuhai Comleader Information
Performance |
| Timeline |
| Peoples Insurance |
| Zhuhai Comleader Inf |
Peoples Insurance and Zhuhai Comleader Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Zhuhai Comleader
The main advantage of trading using opposite Peoples Insurance and Zhuhai Comleader positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Zhuhai Comleader 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 Zhuhai Comleader will offset losses from the drop in Zhuhai Comleader's long position.| Peoples Insurance vs. Chengtun Mining Group | Peoples Insurance vs. Xinjiang Baodi Mining | Peoples Insurance vs. Rising Nonferrous Metals | Peoples Insurance vs. Hubeiyichang Transportation Group |
| Zhuhai Comleader vs. Fiberhome Telecommunication Technologies | Zhuhai Comleader vs. Tongyu Communication | Zhuhai Comleader vs. Western Metal Materials | Zhuhai Comleader vs. CITIC Metal 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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