Correlation Between Xilinmen Furniture and Peoples Insurance
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By analyzing existing cross correlation between Xilinmen Furniture Co and Peoples Insurance of, you can compare the effects of market volatilities on Xilinmen Furniture 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 Xilinmen Furniture with a short position of Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xilinmen Furniture and Peoples Insurance.
Diversification Opportunities for Xilinmen Furniture and Peoples Insurance
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xilinmen and Peoples is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Xilinmen Furniture Co and Peoples Insurance of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance and Xilinmen Furniture 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 Xilinmen Furniture Co 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 Xilinmen Furniture i.e., Xilinmen Furniture and Peoples Insurance go up and down completely randomly.
Pair Corralation between Xilinmen Furniture and Peoples Insurance
Assuming the 90 days trading horizon Xilinmen Furniture is expected to generate 3.29 times less return on investment than Peoples Insurance. In addition to that, Xilinmen Furniture is 1.09 times more volatile than Peoples Insurance of. It trades about 0.0 of its total potential returns per unit of risk. Peoples Insurance of is currently generating about 0.01 per unit of volatility. If you would invest 725.00 in Peoples Insurance of on September 4, 2024 and sell it today you would earn a total of 1.00 from holding Peoples Insurance of or generate 0.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xilinmen Furniture Co vs. Peoples Insurance of
Performance |
| Timeline |
| Xilinmen Furniture |
| Peoples Insurance |
Xilinmen Furniture and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xilinmen Furniture and Peoples Insurance
The main advantage of trading using opposite Xilinmen Furniture and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xilinmen Furniture 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.| Xilinmen Furniture vs. Industrial and Commercial | Xilinmen Furniture vs. Agricultural Bank of | Xilinmen Furniture vs. China Construction Bank | Xilinmen Furniture vs. Bank of China |
| Peoples Insurance vs. Chengtun Mining Group | Peoples Insurance vs. Xinjiang Baodi Mining | Peoples Insurance vs. Rising Nonferrous Metals | Peoples Insurance vs. Hubeiyichang Transportation Group |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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