Correlation Between China Securities and Ping An
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By analyzing existing cross correlation between China Securities 800 and Ping An Insurance, you can compare the effects of market volatilities on China Securities 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 China Securities with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Ping An.
Diversification Opportunities for China Securities and Ping An
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Ping is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 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 China Securities 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 China Securities 800 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 China Securities i.e., China Securities and Ping An go up and down completely randomly.
Pair Corralation between China Securities and Ping An
Assuming the 90 days trading horizon China Securities is expected to generate 8.72 times less return on investment than Ping An. But when comparing it to its historical volatility, China Securities 800 is 1.5 times less risky than Ping An. It trades about 0.0 of its potential returns per unit of risk. Ping An Insurance is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 4,461 in Ping An Insurance on November 29, 2024 and sell it today you would earn a total of 701.00 from holding Ping An Insurance or generate 15.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
China Securities 800 vs. Ping An Insurance
Performance |
| Timeline |
China Securities and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Ping An Insurance
Pair trading matchups for Ping An
Pair Trading with China Securities and Ping An
The main advantage of trading using opposite China Securities and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities 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.| China Securities vs. Tonghua Grape Wine | China Securities vs. Soochow Suzhou Industrial | China Securities vs. Sichuan Yahua Industrial | China Securities vs. Gansu Huangtai Wine marketing |
| Ping An vs. Shanghai CEO Environmental | Ping An vs. Xiamen Insight Investment | Ping An vs. Hubei Geoway Investment | Ping An vs. Beijing Mainstreets Investment |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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