Correlation Between Hefei Metalforming and Peoples Insurance
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By analyzing existing cross correlation between Hefei Metalforming Mach and Peoples Insurance of, you can compare the effects of market volatilities on Hefei Metalforming 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 Hefei Metalforming with a short position of Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hefei Metalforming and Peoples Insurance.
Diversification Opportunities for Hefei Metalforming and Peoples Insurance
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hefei and Peoples is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Hefei Metalforming Mach and Peoples Insurance of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance and Hefei Metalforming 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 Hefei Metalforming Mach 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 Hefei Metalforming i.e., Hefei Metalforming and Peoples Insurance go up and down completely randomly.
Pair Corralation between Hefei Metalforming and Peoples Insurance
Assuming the 90 days trading horizon Hefei Metalforming Mach is expected to generate 1.77 times more return on investment than Peoples Insurance. However, Hefei Metalforming is 1.77 times more volatile than Peoples Insurance of. It trades about 0.04 of its potential returns per unit of risk. Peoples Insurance of is currently generating about -0.03 per unit of risk. If you would invest 751.00 in Hefei Metalforming Mach on August 29, 2024 and sell it today you would earn a total of 15.00 from holding Hefei Metalforming Mach or generate 2.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hefei Metalforming Mach vs. Peoples Insurance of
Performance |
| Timeline |
| Hefei Metalforming Mach |
| Peoples Insurance |
Hefei Metalforming and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hefei Metalforming and Peoples Insurance
The main advantage of trading using opposite Hefei Metalforming and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hefei Metalforming 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.| Hefei Metalforming vs. Biwin Storage Technology | Hefei Metalforming vs. PetroChina Co Ltd | Hefei Metalforming vs. Industrial and Commercial | Hefei Metalforming vs. China Construction Bank |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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