Correlation Between Shenwu Energy and Ping An
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By analyzing existing cross correlation between Shenwu Energy Saving and Ping An Insurance, you can compare the effects of market volatilities on Shenwu Energy 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 Shenwu Energy with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenwu Energy and Ping An.
Diversification Opportunities for Shenwu Energy and Ping An
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenwu and Ping is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Shenwu Energy Saving and Ping An Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ping An Insurance and Shenwu Energy 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 Shenwu Energy Saving 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 Insurance has no effect on the direction of Shenwu Energy i.e., Shenwu Energy and Ping An go up and down completely randomly.
Pair Corralation between Shenwu Energy and Ping An
Assuming the 90 days trading horizon Shenwu Energy is expected to generate 62.36 times less return on investment than Ping An. In addition to that, Shenwu Energy is 1.88 times more volatile than Ping An Insurance. It trades about 0.0 of its total potential returns per unit of risk. Ping An Insurance is currently generating about 0.04 per unit of volatility. If you would invest 4,331 in Ping An Insurance on September 14, 2024 and sell it today you would earn a total of 1,227 from holding Ping An Insurance or generate 28.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenwu Energy Saving vs. Ping An Insurance
Performance |
| Timeline |
| Shenwu Energy Saving |
| Ping An Insurance |
Shenwu Energy and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenwu Energy and Ping An
The main advantage of trading using opposite Shenwu Energy and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenwu Energy 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.| Shenwu Energy vs. Lutian Machinery Co | Shenwu Energy vs. China Longyuan Power | Shenwu Energy vs. PetroChina Co Ltd | Shenwu Energy vs. Bank of China |
| Ping An vs. BYD Co Ltd | Ping An vs. China Mobile Limited | Ping An vs. Agricultural Bank of | Ping An vs. Industrial and Commercial |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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