Correlation Between Ping An and Chongqing Zhifei
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By analyzing existing cross correlation between Ping An Bank and Chongqing Zhifei Bio, you can compare the effects of market volatilities on Ping An and Chongqing Zhifei 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 Chongqing Zhifei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Chongqing Zhifei.
Diversification Opportunities for Ping An and Chongqing Zhifei
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ping and Chongqing is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Bank and Chongqing Zhifei Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Zhifei Bio 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 Chongqing Zhifei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Zhifei Bio has no effect on the direction of Ping An i.e., Ping An and Chongqing Zhifei go up and down completely randomly.
Pair Corralation between Ping An and Chongqing Zhifei
Assuming the 90 days trading horizon Ping An Bank is expected to under-perform the Chongqing Zhifei. But the stock apears to be less risky and, when comparing its historical volatility, Ping An Bank is 2.16 times less risky than Chongqing Zhifei. The stock trades about -0.01 of its potential returns per unit of risk. The Chongqing Zhifei Bio is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,825 in Chongqing Zhifei Bio on September 2, 2024 and sell it today you would earn a total of 114.00 from holding Chongqing Zhifei Bio or generate 4.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Bank vs. Chongqing Zhifei Bio
Performance |
| Timeline |
| Ping An Bank |
| Chongqing Zhifei Bio |
Ping An and Chongqing Zhifei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Chongqing Zhifei
The main advantage of trading using opposite Ping An and Chongqing Zhifei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Chongqing Zhifei 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 Chongqing Zhifei will offset losses from the drop in Chongqing Zhifei's long position.| Ping An vs. XinJiang GuoTong Pipeline | Ping An vs. Cicc Fund Management | Ping An vs. Do Fluoride Chemicals Co | Ping An vs. Yangmei Chemical Co |
| Chongqing Zhifei vs. Mingchen Health Co | Chongqing Zhifei vs. Heren Health Co | Chongqing Zhifei vs. Yunnan Jianzhijia Health Chain | Chongqing Zhifei vs. Harvest Fund 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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