Correlation Between Peoples Insurance and Shaanxi Broadcast
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By analyzing existing cross correlation between Peoples Insurance of and Shaanxi Broadcast TV, you can compare the effects of market volatilities on Peoples Insurance and Shaanxi Broadcast 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 Shaanxi Broadcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Shaanxi Broadcast.
Diversification Opportunities for Peoples Insurance and Shaanxi Broadcast
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Peoples and Shaanxi is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of and Shaanxi Broadcast TV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Broadcast 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 Shaanxi Broadcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Broadcast has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and Shaanxi Broadcast go up and down completely randomly.
Pair Corralation between Peoples Insurance and Shaanxi Broadcast
Assuming the 90 days trading horizon Peoples Insurance of is expected to generate 0.59 times more return on investment than Shaanxi Broadcast. However, Peoples Insurance of is 1.7 times less risky than Shaanxi Broadcast. It trades about 0.05 of its potential returns per unit of risk. Shaanxi Broadcast TV is currently generating about -0.04 per unit of risk. If you would invest 519.00 in Peoples Insurance of on September 25, 2024 and sell it today you would earn a total of 221.00 from holding Peoples Insurance of or generate 42.58% 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. Shaanxi Broadcast TV
Performance |
Timeline |
Peoples Insurance |
Shaanxi Broadcast |
Peoples Insurance and Shaanxi Broadcast Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Peoples Insurance and Shaanxi Broadcast
The main advantage of trading using opposite Peoples Insurance and Shaanxi Broadcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, Shaanxi Broadcast 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 Shaanxi Broadcast will offset losses from the drop in Shaanxi Broadcast's long position.Peoples Insurance vs. Industrial and Commercial | Peoples Insurance vs. Agricultural Bank of | Peoples Insurance vs. China Construction Bank | Peoples Insurance vs. Bank of China |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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