Correlation Between NIPPON PROLOGIS and Peoples Insurance
Can any of the company-specific risk be diversified away by investing in both NIPPON PROLOGIS and Peoples Insurance at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining NIPPON PROLOGIS and Peoples Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NIPPON PROLOGIS REIT and The Peoples Insurance, you can compare the effects of market volatilities on NIPPON PROLOGIS 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 NIPPON PROLOGIS with a short position of Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of NIPPON PROLOGIS and Peoples Insurance.
Diversification Opportunities for NIPPON PROLOGIS and Peoples Insurance
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NIPPON and Peoples is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding NIPPON PROLOGIS REIT and The Peoples Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance and NIPPON PROLOGIS 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 NIPPON PROLOGIS REIT 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 NIPPON PROLOGIS i.e., NIPPON PROLOGIS and Peoples Insurance go up and down completely randomly.
Pair Corralation between NIPPON PROLOGIS and Peoples Insurance
Assuming the 90 days trading horizon NIPPON PROLOGIS is expected to generate 82.07 times less return on investment than Peoples Insurance. But when comparing it to its historical volatility, NIPPON PROLOGIS REIT is 3.5 times less risky than Peoples Insurance. It trades about 0.01 of its potential returns per unit of risk. The Peoples Insurance is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 33.00 in The Peoples Insurance on September 1, 2024 and sell it today you would earn a total of 5.00 from holding The Peoples Insurance or generate 15.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
NIPPON PROLOGIS REIT vs. The Peoples Insurance
Performance |
| Timeline |
| NIPPON PROLOGIS REIT |
| Peoples Insurance |
NIPPON PROLOGIS and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NIPPON PROLOGIS and Peoples Insurance
The main advantage of trading using opposite NIPPON PROLOGIS and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NIPPON PROLOGIS 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.| NIPPON PROLOGIS vs. Public Storage | NIPPON PROLOGIS vs. Ascendas Real Estate | NIPPON PROLOGIS vs. STAG Industrial |
| Peoples Insurance vs. The Hanover Insurance | Peoples Insurance vs. Superior Plus Corp | Peoples Insurance vs. Origin Agritech | Peoples Insurance vs. Identiv |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |