Correlation Between Shanxi Xishan and Ping An
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By analyzing existing cross correlation between Shanxi Xishan Coal and Ping An Insurance, you can compare the effects of market volatilities on Shanxi Xishan 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 Shanxi Xishan with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanxi Xishan and Ping An.
Diversification Opportunities for Shanxi Xishan and Ping An
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanxi and Ping is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shanxi Xishan Coal 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 Shanxi Xishan 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 Shanxi Xishan Coal 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 Shanxi Xishan i.e., Shanxi Xishan and Ping An go up and down completely randomly.
Pair Corralation between Shanxi Xishan and Ping An
Assuming the 90 days trading horizon Shanxi Xishan Coal is expected to generate 0.67 times more return on investment than Ping An. However, Shanxi Xishan Coal is 1.5 times less risky than Ping An. It trades about -0.16 of its potential returns per unit of risk. Ping An Insurance is currently generating about -0.14 per unit of risk. If you would invest 853.00 in Shanxi Xishan Coal on September 12, 2024 and sell it today you would lose (29.00) from holding Shanxi Xishan Coal or give up 3.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanxi Xishan Coal vs. Ping An Insurance
Performance |
| Timeline |
| Shanxi Xishan Coal |
| Ping An Insurance |
Shanxi Xishan and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanxi Xishan and Ping An
The main advantage of trading using opposite Shanxi Xishan and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanxi Xishan 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.| Shanxi Xishan vs. Jiangsu Yanghe Brewery | Shanxi Xishan vs. Shanghai Construction Group | Shanxi Xishan vs. Nanxing Furniture Machinery | Shanxi Xishan vs. Shantui Construction Machinery |
| Ping An vs. China Petroleum Chemical | Ping An vs. PetroChina Co Ltd | Ping An vs. China Mobile Limited | 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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