Correlation Between Zhongtong Guomai and Peoples Insurance
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Peoples Insurance of, you can compare the effects of market volatilities on Zhongtong Guomai 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 Zhongtong Guomai with a short position of Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Peoples Insurance.
Diversification Opportunities for Zhongtong Guomai and Peoples Insurance
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhongtong and Peoples is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication and Peoples Insurance of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance and Zhongtong Guomai 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 Zhongtong Guomai Communication 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 Zhongtong Guomai i.e., Zhongtong Guomai and Peoples Insurance go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Peoples Insurance
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to generate 2.03 times more return on investment than Peoples Insurance. However, Zhongtong Guomai is 2.03 times more volatile than Peoples Insurance of. It trades about 0.41 of its potential returns per unit of risk. Peoples Insurance of is currently generating about -0.18 per unit of risk. If you would invest 691.00 in Zhongtong Guomai Communication on December 1, 2024 and sell it today you would earn a total of 153.00 from holding Zhongtong Guomai Communication or generate 22.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. Peoples Insurance of
Performance |
| Timeline |
| Zhongtong Guomai Com |
| Peoples Insurance |
Zhongtong Guomai and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and Peoples Insurance
The main advantage of trading using opposite Zhongtong Guomai and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai 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.| Zhongtong Guomai vs. Ziel Home Furnishing | Zhongtong Guomai vs. Shanghai Ziyan Foods | Zhongtong Guomai vs. Jahen Household Products | Zhongtong Guomai vs. Markor International Home |
| Peoples Insurance vs. Hua Xia Bank | Peoples Insurance vs. Emdoor Information Co | Peoples Insurance vs. Westone Information Industry | Peoples Insurance vs. Northking Information Technology |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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