Correlation Between Bank of China and Peoples Insurance
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By analyzing existing cross correlation between Bank of China and Peoples Insurance of, you can compare the effects of market volatilities on Bank of China 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 Bank of China with a short position of Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Peoples Insurance.
Diversification Opportunities for Bank of China and Peoples Insurance
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Peoples is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Peoples Insurance of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance and Bank of China 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 Bank of China 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 Bank of China i.e., Bank of China and Peoples Insurance go up and down completely randomly.
Pair Corralation between Bank of China and Peoples Insurance
Assuming the 90 days trading horizon Bank of China is expected to generate 0.68 times more return on investment than Peoples Insurance. However, Bank of China is 1.47 times less risky than Peoples Insurance. It trades about 0.4 of its potential returns per unit of risk. Peoples Insurance of is currently generating about 0.19 per unit of risk. If you would invest 504.00 in Bank of China on September 28, 2024 and sell it today you would earn a total of 44.00 from holding Bank of China or generate 8.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Peoples Insurance of
Performance |
| Timeline |
| Bank of China |
| Peoples Insurance |
Bank of China and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Peoples Insurance
The main advantage of trading using opposite Bank of China and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China 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.| Bank of China vs. Industrial and Commercial | Bank of China vs. Kweichow Moutai Co | Bank of China vs. Agricultural Bank of | Bank of China vs. China Mobile Limited |
| 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 CEOs Directory module to screen CEOs from public companies around the world.
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