Correlation Between Ping An and XinJiang GuoTong
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By analyzing existing cross correlation between Ping An Bank and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on Ping An and XinJiang GuoTong 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 Ping An with a short position of XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and XinJiang GuoTong.
Diversification Opportunities for Ping An and XinJiang GuoTong
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ping and XinJiang is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Bank and XinJiang GuoTong Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XinJiang GuoTong Pipeline and Ping An 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 Ping An Bank are associated (or correlated) with XinJiang GuoTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XinJiang GuoTong Pipeline has no effect on the direction of Ping An i.e., Ping An and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between Ping An and XinJiang GuoTong
Assuming the 90 days trading horizon Ping An is expected to generate 13.13 times less return on investment than XinJiang GuoTong. But when comparing it to its historical volatility, Ping An Bank is 4.25 times less risky than XinJiang GuoTong. It trades about 0.1 of its potential returns per unit of risk. XinJiang GuoTong Pipeline is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 820.00 in XinJiang GuoTong Pipeline on November 27, 2024 and sell it today you would earn a total of 118.00 from holding XinJiang GuoTong Pipeline or generate 14.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Bank vs. XinJiang GuoTong Pipeline
Performance |
| Timeline |
| Ping An Bank |
| XinJiang GuoTong Pipeline |
Ping An and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and XinJiang GuoTong
The main advantage of trading using opposite Ping An and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, XinJiang GuoTong 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 XinJiang GuoTong will offset losses from the drop in XinJiang GuoTong's long position.| Ping An vs. Dynagreen Environmental Protection | Ping An vs. Baoshan Iron Steel | Ping An vs. Yili Chuanning Biotechnology | Ping An vs. Jiangsu GDK Biotechnology |
| XinJiang GuoTong vs. King Strong New Material | XinJiang GuoTong vs. Eastern Communications Co | XinJiang GuoTong vs. Jilin OLED Material | XinJiang GuoTong vs. Tianjin Pengling Rubber |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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