Correlation Between Guotai Epoint and Peoples Insurance
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By analyzing existing cross correlation between Guotai Epoint Software and Peoples Insurance of, you can compare the effects of market volatilities on Guotai Epoint 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 Guotai Epoint with a short position of Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guotai Epoint and Peoples Insurance.
Diversification Opportunities for Guotai Epoint and Peoples Insurance
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guotai and Peoples is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Guotai Epoint Software and Peoples Insurance of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance and Guotai Epoint 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 Guotai Epoint Software 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 Guotai Epoint i.e., Guotai Epoint and Peoples Insurance go up and down completely randomly.
Pair Corralation between Guotai Epoint and Peoples Insurance
Assuming the 90 days trading horizon Guotai Epoint is expected to generate 1.21 times less return on investment than Peoples Insurance. In addition to that, Guotai Epoint is 2.11 times more volatile than Peoples Insurance of. It trades about 0.03 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 511.00 in Peoples Insurance of on October 22, 2024 and sell it today you would earn a total of 173.00 from holding Peoples Insurance of or generate 33.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guotai Epoint Software vs. Peoples Insurance of
Performance |
| Timeline |
| Guotai Epoint Software |
| Peoples Insurance |
Guotai Epoint and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guotai Epoint and Peoples Insurance
The main advantage of trading using opposite Guotai Epoint and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guotai Epoint 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.| Guotai Epoint vs. Tianshan Aluminum Group | Guotai Epoint vs. Panda Financial Holding | Guotai Epoint vs. Ningbo Tech Bank Co | Guotai Epoint vs. China Everbright Bank |
| Peoples Insurance vs. Guotai Epoint Software | Peoples Insurance vs. Jinlong Machinery Electronic | Peoples Insurance vs. Linewell Software Co | Peoples Insurance vs. Shantui Construction Machinery |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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