Correlation Between China Construction and Peoples Insurance
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By analyzing existing cross correlation between China Construction Bank and Peoples Insurance of, you can compare the effects of market volatilities on China Construction 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 China Construction with a short position of Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Peoples Insurance.
Diversification Opportunities for China Construction and Peoples Insurance
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Peoples is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Peoples Insurance of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance and China Construction 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 China Construction Bank 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 China Construction i.e., China Construction and Peoples Insurance go up and down completely randomly.
Pair Corralation between China Construction and Peoples Insurance
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.73 times more return on investment than Peoples Insurance. However, China Construction Bank is 1.36 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 529.00 in China Construction Bank on September 28, 2024 and sell it today you would earn a total of 348.00 from holding China Construction Bank or generate 65.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Peoples Insurance of
Performance |
| Timeline |
| China Construction Bank |
| Peoples Insurance |
China Construction and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Peoples Insurance
The main advantage of trading using opposite China Construction and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction 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.| China Construction vs. Harbin Air Conditioning | China Construction vs. Beijing Wandong Medical | China Construction vs. Inspur Software Co | China Construction vs. Ningbo MedicalSystem Biotechnology |
| Peoples Insurance vs. Industrial and Commercial | Peoples Insurance vs. Agricultural Bank of | Peoples Insurance vs. China Construction Bank | Peoples Insurance vs. Bank of China |
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.
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