Correlation Between Peoples Insurance and LABOCANNA
Can any of the company-specific risk be diversified away by investing in both Peoples Insurance and LABOCANNA 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 LABOCANNA 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 LABOCANNA SA ZY 10, you can compare the effects of market volatilities on Peoples Insurance and LABOCANNA 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 LABOCANNA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and LABOCANNA.
Diversification Opportunities for Peoples Insurance and LABOCANNA
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Peoples and LABOCANNA is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding The Peoples Insurance and LABOCANNA SA ZY 10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LABOCANNA SA ZY 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 LABOCANNA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LABOCANNA SA ZY has no effect on the direction of Peoples Insurance i.e., Peoples Insurance and LABOCANNA go up and down completely randomly.
Pair Corralation between Peoples Insurance and LABOCANNA
Assuming the 90 days horizon The Peoples Insurance is expected to generate 1.12 times more return on investment than LABOCANNA. However, Peoples Insurance is 1.12 times more volatile than LABOCANNA SA ZY 10. It trades about 0.13 of its potential returns per unit of risk. LABOCANNA SA ZY 10 is currently generating about -0.1 per unit of risk. If you would invest 67.00 in The Peoples Insurance on July 26, 2025 and sell it today you would earn a total of 12.00 from holding The Peoples Insurance or generate 17.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Peoples Insurance vs. LABOCANNA SA ZY 10
Performance |
| Timeline |
| Peoples Insurance |
| LABOCANNA SA ZY |
Peoples Insurance and LABOCANNA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and LABOCANNA
The main advantage of trading using opposite Peoples Insurance and LABOCANNA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance position performs unexpectedly, LABOCANNA 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 LABOCANNA will offset losses from the drop in LABOCANNA's long position.| Peoples Insurance vs. UPDATE SOFTWARE | Peoples Insurance vs. Western Copper and | Peoples Insurance vs. BACKBONE Technology AG | Peoples Insurance vs. Amkor Technology |
| LABOCANNA vs. Axcelis Technologies | LABOCANNA vs. WIMFARM SA EO | LABOCANNA vs. Uber Technologies | LABOCANNA vs. Cleanaway Waste Management |
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 Stocks Directory module to find actively traded stocks across global markets.
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