Correlation Between PetroChina and Peoples Insurance
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By analyzing existing cross correlation between PetroChina Co Ltd and Peoples Insurance of, you can compare the effects of market volatilities on PetroChina 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 PetroChina with a short position of Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Peoples Insurance.
Diversification Opportunities for PetroChina and Peoples Insurance
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and Peoples is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Peoples Insurance of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance and PetroChina 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 PetroChina Co Ltd 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 PetroChina i.e., PetroChina and Peoples Insurance go up and down completely randomly.
Pair Corralation between PetroChina and Peoples Insurance
Assuming the 90 days trading horizon PetroChina is expected to generate 1.82 times less return on investment than Peoples Insurance. In addition to that, PetroChina is 1.16 times more volatile than Peoples Insurance of. It trades about 0.03 of its total potential returns per unit of risk. Peoples Insurance of is currently generating about 0.07 per unit of volatility. If you would invest 534.00 in Peoples Insurance of on August 25, 2024 and sell it today you would earn a total of 167.00 from holding Peoples Insurance of or generate 31.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Peoples Insurance of
Performance |
| Timeline |
| PetroChina |
| Peoples Insurance |
PetroChina and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Peoples Insurance
The main advantage of trading using opposite PetroChina and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina 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.| PetroChina vs. Zhejiang Kingland Pipeline | PetroChina vs. COL Digital Publishing | PetroChina vs. Suzhou Novoprotein Scientific | PetroChina vs. Xiangyang Automobile Bearing |
| Peoples Insurance vs. PetroChina Co Ltd | Peoples Insurance vs. China Mobile Limited | Peoples Insurance vs. CNOOC Limited | Peoples Insurance vs. Ping An Insurance |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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