Correlation Between Peoples Insurance and COMMERCIAL BANK
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By analyzing existing cross correlation between Peoples Insurance PLC and COMMERCIAL BANK OF, you can compare the effects of market volatilities on Peoples Insurance and COMMERCIAL BANK 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 Peoples Insurance with a short position of COMMERCIAL BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and COMMERCIAL BANK.
Diversification Opportunities for Peoples Insurance and COMMERCIAL BANK
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Peoples and COMMERCIAL is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance PLC and COMMERCIAL BANK OF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMMERCIAL BANK and Peoples Insurance 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 Peoples Insurance PLC are associated (or correlated) with COMMERCIAL BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMMERCIAL BANK has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and COMMERCIAL BANK go up and down completely randomly.
Pair Corralation between Peoples Insurance and COMMERCIAL BANK
Assuming the 90 days trading horizon Peoples Insurance is expected to generate 368.0 times less return on investment than COMMERCIAL BANK. In addition to that, Peoples Insurance is 1.04 times more volatile than COMMERCIAL BANK OF. It trades about 0.0 of its total potential returns per unit of risk. COMMERCIAL BANK OF is currently generating about 0.08 per unit of volatility. If you would invest 8,410 in COMMERCIAL BANK OF on August 31, 2024 and sell it today you would earn a total of 1,080 from holding COMMERCIAL BANK OF or generate 12.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peoples Insurance PLC vs. COMMERCIAL BANK OF
Performance |
| Timeline |
| Peoples Insurance PLC |
| COMMERCIAL BANK |
Peoples Insurance and COMMERCIAL BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and COMMERCIAL BANK
The main advantage of trading using opposite Peoples Insurance and COMMERCIAL BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, COMMERCIAL BANK 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 COMMERCIAL BANK will offset losses from the drop in COMMERCIAL BANK's long position.| Peoples Insurance vs. HDFC Bank of | Peoples Insurance vs. Nations Trust Bank | Peoples Insurance vs. RENUKA FOODS PLC | Peoples Insurance vs. Carson Cumberbatch PLC |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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