Correlation Between Peoples Insurance and Pool
Can any of the company-specific risk be diversified away by investing in both Peoples Insurance and Pool 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 Peoples Insurance and Pool into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Peoples Insurance and Pool Corporation, you can compare the effects of market volatilities on Peoples Insurance and Pool 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 Pool. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Pool.
Diversification Opportunities for Peoples Insurance and Pool
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Peoples and Pool is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding The Peoples Insurance and Pool Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pool 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 The Peoples Insurance are associated (or correlated) with Pool. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pool has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Pool go up and down completely randomly.
Pair Corralation between Peoples Insurance and Pool
If you would invest 33,287 in Pool Corporation on November 3, 2024 and sell it today you would earn a total of 1,138 from holding Pool Corporation or generate 3.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Peoples Insurance vs. Pool Corp.
Performance |
| Timeline |
| Peoples Insurance |
| Pool |
Peoples Insurance and Pool Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Pool
The main advantage of trading using opposite Peoples Insurance and Pool positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Pool 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 Pool will offset losses from the drop in Pool's long position.| Peoples Insurance vs. Albertsons Companies | Peoples Insurance vs. SunOpta | Peoples Insurance vs. EastGroup Properties | Peoples Insurance vs. Astral Foods Limited |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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