Correlation Between Ping An and Dow Jones
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By analyzing existing cross correlation between Ping An Bank and Dow Jones Industrial, you can compare the effects of market volatilities on Ping An and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Dow Jones.
Diversification Opportunities for Ping An and Dow Jones
Poor diversification
The 3 months correlation between Ping and Dow is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Bank and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Ping An i.e., Ping An and Dow Jones go up and down completely randomly.
Pair Corralation between Ping An and Dow Jones
Assuming the 90 days trading horizon Ping An is expected to generate 1.03 times less return on investment than Dow Jones. In addition to that, Ping An is 2.31 times more volatile than Dow Jones Industrial. It trades about 0.07 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.16 per unit of volatility. If you would invest 3,857,103 in Dow Jones Industrial on August 30, 2024 and sell it today you would earn a total of 615,103 from holding Dow Jones Industrial or generate 15.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.03% |
| Values | Daily Returns |
Ping An Bank vs. Dow Jones Industrial
Performance |
| Timeline |
Ping An and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Ping An Bank
Pair trading matchups for Ping An
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Ping An and Dow Jones
The main advantage of trading using opposite Ping An and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' 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 |
| Dow Jones vs. Skillful Craftsman Education | Dow Jones vs. Acco Brands | Dow Jones vs. Cracker Barrel Old | Dow Jones vs. Coursera |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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