Correlation Between Hunan Investment and Ping An
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hunan Investment Group and Ping An Bank, you can compare the effects of market volatilities on Hunan Investment and Ping An 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 Hunan Investment with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Investment and Ping An.
Diversification Opportunities for Hunan Investment and Ping An
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hunan and Ping is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Investment Group and Ping An Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ping An Bank and Hunan Investment 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 Hunan Investment Group are associated (or correlated) with Ping An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ping An Bank has no effect on the direction of Hunan Investment i.e., Hunan Investment and Ping An go up and down completely randomly.
Pair Corralation between Hunan Investment and Ping An
Assuming the 90 days trading horizon Hunan Investment Group is expected to generate 3.33 times more return on investment than Ping An. However, Hunan Investment is 3.33 times more volatile than Ping An Bank. It trades about 0.18 of its potential returns per unit of risk. Ping An Bank is currently generating about 0.05 per unit of risk. If you would invest 530.00 in Hunan Investment Group on September 12, 2024 and sell it today you would earn a total of 75.00 from holding Hunan Investment Group or generate 14.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Investment Group vs. Ping An Bank
Performance |
| Timeline |
| Hunan Investment |
| Ping An Bank |
Hunan Investment and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Investment and Ping An
The main advantage of trading using opposite Hunan Investment and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Investment position performs unexpectedly, Ping An 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 Ping An will offset losses from the drop in Ping An's long position.| Hunan Investment vs. Agricultural Bank of | Hunan Investment vs. Industrial and Commercial | Hunan Investment vs. Bank of China | Hunan Investment vs. PetroChina Co Ltd |
| Ping An vs. Jiangsu Jinling Sports | Ping An vs. Dazhong Transportation Group | Ping An vs. Sichuan Fulin Transportation | Ping An vs. Lianhe Chemical Technology |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |