Correlation Between Shenzhen MYS and Ping An
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By analyzing existing cross correlation between Shenzhen MYS Environmental and Ping An Insurance, you can compare the effects of market volatilities on Shenzhen MYS 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 Shenzhen MYS with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and Ping An.
Diversification Opportunities for Shenzhen MYS and Ping An
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Ping is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental 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 Shenzhen MYS 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 Shenzhen MYS Environmental 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 Shenzhen MYS i.e., Shenzhen MYS and Ping An go up and down completely randomly.
Pair Corralation between Shenzhen MYS and Ping An
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to generate 2.73 times more return on investment than Ping An. However, Shenzhen MYS is 2.73 times more volatile than Ping An Insurance. It trades about 0.24 of its potential returns per unit of risk. Ping An Insurance is currently generating about -0.16 per unit of risk. If you would invest 329.00 in Shenzhen MYS Environmental on September 15, 2024 and sell it today you would earn a total of 77.00 from holding Shenzhen MYS Environmental or generate 23.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen MYS Environmental vs. Ping An Insurance
Performance |
| Timeline |
| Shenzhen MYS Environ |
| Ping An Insurance |
Shenzhen MYS and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MYS and Ping An
The main advantage of trading using opposite Shenzhen MYS and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS 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.| Shenzhen MYS vs. Shanghai Yanpu Metal | Shenzhen MYS vs. Inly Media Co | Shenzhen MYS vs. Pengxin International Mining | Shenzhen MYS vs. Air China Ltd |
| 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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