Correlation Between Ping An and Beijing Venustech
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By analyzing existing cross correlation between Ping An Bank and Beijing Venustech, you can compare the effects of market volatilities on Ping An and Beijing Venustech 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 Beijing Venustech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Beijing Venustech.
Diversification Opportunities for Ping An and Beijing Venustech
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ping and Beijing is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Bank and Beijing Venustech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Venustech 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 Beijing Venustech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Venustech has no effect on the direction of Ping An i.e., Ping An and Beijing Venustech go up and down completely randomly.
Pair Corralation between Ping An and Beijing Venustech
Assuming the 90 days trading horizon Ping An Bank is expected to generate 0.56 times more return on investment than Beijing Venustech. However, Ping An Bank is 1.79 times less risky than Beijing Venustech. It trades about 0.0 of its potential returns per unit of risk. Beijing Venustech is currently generating about -0.01 per unit of risk. If you would invest 1,222 in Ping An Bank on August 30, 2024 and sell it today you would lose (83.00) from holding Ping An Bank or give up 6.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Bank vs. Beijing Venustech
Performance |
| Timeline |
| Ping An Bank |
| Beijing Venustech |
Ping An and Beijing Venustech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Beijing Venustech
The main advantage of trading using opposite Ping An and Beijing Venustech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Beijing Venustech 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 Beijing Venustech will offset losses from the drop in Beijing Venustech's long position.| Ping An vs. Mango Excellent Media | Ping An vs. Threes Company Media | Ping An vs. Shanxi Lanhua Sci Tech | Ping An vs. Oriental Times Media |
| Beijing Venustech vs. Shuhua Sports Co | Beijing Venustech vs. Jinling Hotel Corp | Beijing Venustech vs. China Sports Industry | Beijing Venustech vs. Sichuan Yahua Industrial |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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