Correlation Between Fujian Anjoy and Peoples Insurance
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By analyzing existing cross correlation between Fujian Anjoy Foods and Peoples Insurance of, you can compare the effects of market volatilities on Fujian Anjoy 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 Fujian Anjoy with a short position of Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Anjoy and Peoples Insurance.
Diversification Opportunities for Fujian Anjoy and Peoples Insurance
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fujian and Peoples is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Anjoy 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 Fujian Anjoy 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 Fujian Anjoy 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 Fujian Anjoy i.e., Fujian Anjoy and Peoples Insurance go up and down completely randomly.
Pair Corralation between Fujian Anjoy and Peoples Insurance
Assuming the 90 days trading horizon Fujian Anjoy Foods is expected to under-perform the Peoples Insurance. But the stock apears to be less risky and, when comparing its historical volatility, Fujian Anjoy Foods is 1.25 times less risky than Peoples Insurance. The stock trades about -0.27 of its potential returns per unit of risk. The Peoples Insurance of is currently generating about -0.17 of returns per unit of risk over similar time horizon. If you would invest 738.00 in Peoples Insurance of on October 20, 2024 and sell it today you would lose (54.00) from holding Peoples Insurance of or give up 7.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Anjoy Foods vs. Peoples Insurance of
Performance |
| Timeline |
| Fujian Anjoy Foods |
| Peoples Insurance |
Fujian Anjoy and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Anjoy and Peoples Insurance
The main advantage of trading using opposite Fujian Anjoy and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Anjoy 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.| Fujian Anjoy vs. Heilongjiang Publishing Media | Fujian Anjoy vs. Northern United Publishing | Fujian Anjoy vs. Changjiang Publishing Media | Fujian Anjoy vs. Yingde Greatchem Chemicals |
| Peoples Insurance vs. Keeson Technology Corp | Peoples Insurance vs. Olympic Circuit Technology | Peoples Insurance vs. Shanghai Action Education | Peoples Insurance vs. Jiangsu Phoenix Publishing |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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