Correlation Between Shanghai Ziyan and Peoples Insurance
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By analyzing existing cross correlation between Shanghai Ziyan Foods and Peoples Insurance of, you can compare the effects of market volatilities on Shanghai Ziyan 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 Shanghai Ziyan with a short position of Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Ziyan and Peoples Insurance.
Diversification Opportunities for Shanghai Ziyan and Peoples Insurance
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Peoples is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Ziyan Foods and Peoples Insurance of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance and Shanghai Ziyan 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 Shanghai Ziyan Foods 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 Shanghai Ziyan i.e., Shanghai Ziyan and Peoples Insurance go up and down completely randomly.
Pair Corralation between Shanghai Ziyan and Peoples Insurance
Assuming the 90 days trading horizon Shanghai Ziyan is expected to generate 5.91 times less return on investment than Peoples Insurance. In addition to that, Shanghai Ziyan is 1.43 times more volatile than Peoples Insurance of. It trades about 0.01 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 532.00 in Peoples Insurance of on October 14, 2024 and sell it today you would earn a total of 140.00 from holding Peoples Insurance of or generate 26.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Ziyan Foods vs. Peoples Insurance of
Performance |
| Timeline |
| Shanghai Ziyan Foods |
| Peoples Insurance |
Shanghai Ziyan and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Ziyan and Peoples Insurance
The main advantage of trading using opposite Shanghai Ziyan and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Ziyan 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.| Shanghai Ziyan vs. Xiamen Bank Co | Shanghai Ziyan vs. Inspur Software Co | Shanghai Ziyan vs. China Everbright Bank | Shanghai Ziyan vs. Jiangsu Financial Leasing |
| Peoples Insurance vs. Western Metal Materials | Peoples Insurance vs. Thinkon Semiconductor Jinzhou | Peoples Insurance vs. Nexchip Semiconductor Corp | Peoples Insurance vs. Union Semiconductor Co |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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