Correlation Between Ping An and Sinocelltech
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By analyzing existing cross correlation between Ping An Bank and Sinocelltech Group, you can compare the effects of market volatilities on Ping An and Sinocelltech 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 Sinocelltech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Sinocelltech.
Diversification Opportunities for Ping An and Sinocelltech
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ping and Sinocelltech is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Bank and Sinocelltech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinocelltech Group 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 Sinocelltech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinocelltech Group has no effect on the direction of Ping An i.e., Ping An and Sinocelltech go up and down completely randomly.
Pair Corralation between Ping An and Sinocelltech
Assuming the 90 days trading horizon Ping An Bank is expected to under-perform the Sinocelltech. But the stock apears to be less risky and, when comparing its historical volatility, Ping An Bank is 2.0 times less risky than Sinocelltech. The stock trades about -0.04 of its potential returns per unit of risk. The Sinocelltech Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,801 in Sinocelltech Group on August 30, 2024 and sell it today you would earn a total of 104.00 from holding Sinocelltech Group or generate 2.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Bank vs. Sinocelltech Group
Performance |
| Timeline |
| Ping An Bank |
| Sinocelltech Group |
Ping An and Sinocelltech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Sinocelltech
The main advantage of trading using opposite Ping An and Sinocelltech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Sinocelltech 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 Sinocelltech will offset losses from the drop in Sinocelltech's long position.| Ping An vs. Linewell Software Co | Ping An vs. Maoming Petro Chemical Shihua | Ping An vs. Lianhe Chemical Technology | Ping An vs. Dymatic Chemicals |
| Sinocelltech vs. Industrial and Commercial | Sinocelltech vs. China Construction Bank | Sinocelltech vs. Agricultural Bank of | Sinocelltech vs. Bank of China |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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