Correlation Between Zhejiang Yinlun and Ping An
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By analyzing existing cross correlation between Zhejiang Yinlun Machinery and Ping An Insurance, you can compare the effects of market volatilities on Zhejiang Yinlun 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 Zhejiang Yinlun with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yinlun and Ping An.
Diversification Opportunities for Zhejiang Yinlun and Ping An
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhejiang and Ping is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yinlun Machinery 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 Zhejiang Yinlun 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 Zhejiang Yinlun Machinery 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 Zhejiang Yinlun i.e., Zhejiang Yinlun and Ping An go up and down completely randomly.
Pair Corralation between Zhejiang Yinlun and Ping An
Assuming the 90 days trading horizon Zhejiang Yinlun Machinery is expected to under-perform the Ping An. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Yinlun Machinery is 1.12 times less risky than Ping An. The stock trades about -0.08 of its potential returns per unit of risk. The Ping An Insurance is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 5,709 in Ping An Insurance on August 29, 2024 and sell it today you would lose (404.00) from holding Ping An Insurance or give up 7.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yinlun Machinery vs. Ping An Insurance
Performance |
| Timeline |
| Zhejiang Yinlun Machinery |
| Ping An Insurance |
Zhejiang Yinlun and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yinlun and Ping An
The main advantage of trading using opposite Zhejiang Yinlun and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yinlun 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.| Zhejiang Yinlun vs. Agricultural Bank of | Zhejiang Yinlun vs. Industrial and Commercial | Zhejiang Yinlun vs. Bank of China | Zhejiang Yinlun vs. China Construction Bank |
| Ping An vs. Kweichow Moutai Co | Ping An vs. Contemporary Amperex Technology | Ping An vs. G bits Network Technology | Ping An vs. BYD Co Ltd |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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