Correlation Between Peoples Insurance and Shandong Homey
Specify exactly 2 symbols:
By analyzing existing cross correlation between Peoples Insurance of and Shandong Homey Aquatic, you can compare the effects of market volatilities on Peoples Insurance and Shandong Homey 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 Shandong Homey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Shandong Homey.
Diversification Opportunities for Peoples Insurance and Shandong Homey
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Peoples and Shandong is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Shandong Homey Aquatic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Homey Aquatic 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 of are associated (or correlated) with Shandong Homey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Homey Aquatic has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Shandong Homey go up and down completely randomly.
Pair Corralation between Peoples Insurance and Shandong Homey
Assuming the 90 days trading horizon Peoples Insurance is expected to generate 3.19 times less return on investment than Shandong Homey. But when comparing it to its historical volatility, Peoples Insurance of is 2.75 times less risky than Shandong Homey. It trades about 0.15 of its potential returns per unit of risk. Shandong Homey Aquatic is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 225.00 in Shandong Homey Aquatic on September 23, 2024 and sell it today you would earn a total of 31.00 from holding Shandong Homey Aquatic or generate 13.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Peoples Insurance of vs. Shandong Homey Aquatic
Performance |
Timeline |
Peoples Insurance |
Shandong Homey Aquatic |
Peoples Insurance and Shandong Homey Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Peoples Insurance and Shandong Homey
The main advantage of trading using opposite Peoples Insurance and Shandong Homey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Shandong Homey 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 Shandong Homey will offset losses from the drop in Shandong Homey's long position.Peoples Insurance vs. Xiandai Investment Co | Peoples Insurance vs. Zhejiang Construction Investment | Peoples Insurance vs. Olympic Circuit Technology | Peoples Insurance vs. Niutech Environment Technology |
Shandong Homey vs. China Publishing Media | Shandong Homey vs. Do Fluoride Chemicals Co | Shandong Homey vs. Chengdu B ray Media | Shandong Homey vs. Peoples Insurance of |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
Global Correlations Find global opportunities by holding instruments from different markets | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |