Correlation Between Industrial and Peoples Insurance
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By analyzing existing cross correlation between Industrial and Commercial and Peoples Insurance of, you can compare the effects of market volatilities on Industrial and Peoples Insurance 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 Industrial with a short position of Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Peoples Insurance.
Diversification Opportunities for Industrial and Peoples Insurance
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Industrial and Peoples is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Peoples Insurance of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance and Industrial 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 Industrial and Commercial are associated (or correlated) with Peoples Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peoples Insurance has no effect on the direction of Industrial i.e., Industrial and Peoples Insurance go up and down completely randomly.
Pair Corralation between Industrial and Peoples Insurance
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.69 times more return on investment than Peoples Insurance. However, Industrial and Commercial is 1.46 times less risky than Peoples Insurance. It trades about 0.09 of its potential returns per unit of risk. Peoples Insurance of is currently generating about 0.06 per unit of risk. If you would invest 400.00 in Industrial and Commercial on September 12, 2024 and sell it today you would earn a total of 242.00 from holding Industrial and Commercial or generate 60.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Peoples Insurance of
Performance |
| Timeline |
| Industrial and Commercial |
| Peoples Insurance |
Industrial and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Peoples Insurance
The main advantage of trading using opposite Industrial and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Peoples Insurance 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 Peoples Insurance will offset losses from the drop in Peoples Insurance's long position.| Industrial vs. Eastroc Beverage Group | Industrial vs. China Publishing Media | Industrial vs. Inly Media Co | Industrial vs. Beijing Sanyuan Foods |
| Peoples Insurance vs. China Petroleum Chemical | Peoples Insurance vs. PetroChina Co Ltd | Peoples Insurance vs. China Mobile Limited | Peoples Insurance vs. Industrial and Commercial |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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