Correlation Between China Railway and Ping An
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Railway Materials and Ping An Bank, you can compare the effects of market volatilities on China Railway 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 Railway with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and Ping An.
Diversification Opportunities for China Railway and Ping An
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Ping is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Materials 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 China Railway 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 Railway Materials 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 China Railway i.e., China Railway and Ping An go up and down completely randomly.
Pair Corralation between China Railway and Ping An
Assuming the 90 days trading horizon China Railway Materials is expected to generate 1.05 times more return on investment than Ping An. However, China Railway is 1.05 times more volatile than Ping An Bank. It trades about 0.01 of its potential returns per unit of risk. Ping An Bank is currently generating about 0.0 per unit of risk. If you would invest 292.00 in China Railway Materials on September 4, 2024 and sell it today you would earn a total of 1.00 from holding China Railway Materials or generate 0.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Railway Materials vs. Ping An Bank
Performance |
| Timeline |
| China Railway Materials |
| Ping An Bank |
China Railway and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and Ping An
The main advantage of trading using opposite China Railway and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway 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 Railway vs. Industrial and Commercial | China Railway vs. China Construction Bank | China Railway vs. Agricultural Bank of | China Railway vs. Bank of China |
| Ping An vs. Zoje Resources Investment | Ping An vs. Hunan Investment Group | Ping An vs. Long Yuan Construction | Ping An vs. Guangdong Jinming Machinery |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |