Correlation Between Tongyu Communication and Ping An
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By analyzing existing cross correlation between Tongyu Communication and Ping An Insurance, you can compare the effects of market volatilities on Tongyu Communication 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 Tongyu Communication with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongyu Communication and Ping An.
Diversification Opportunities for Tongyu Communication and Ping An
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tongyu and Ping is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Tongyu Communication 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 Tongyu Communication 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 Tongyu Communication 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 Tongyu Communication i.e., Tongyu Communication and Ping An go up and down completely randomly.
Pair Corralation between Tongyu Communication and Ping An
Assuming the 90 days trading horizon Tongyu Communication is expected to under-perform the Ping An. In addition to that, Tongyu Communication is 2.28 times more volatile than Ping An Insurance. It trades about -0.19 of its total potential returns per unit of risk. Ping An Insurance is currently generating about -0.34 per unit of volatility. If you would invest 5,562 in Ping An Insurance on October 11, 2024 and sell it today you would lose (532.00) from holding Ping An Insurance or give up 9.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongyu Communication vs. Ping An Insurance
Performance |
| Timeline |
| Tongyu Communication |
| Ping An Insurance |
Tongyu Communication and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongyu Communication and Ping An
The main advantage of trading using opposite Tongyu Communication and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongyu Communication 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.| Tongyu Communication vs. Emdoor Information Co | Tongyu Communication vs. Konfoong Materials International | Tongyu Communication vs. Sanxiang Advanced Materials | Tongyu Communication vs. Keda Clean Energy |
| Ping An vs. Unisplendour Corp | Ping An vs. Konfoong Materials International | Ping An vs. Zhejiang JIULI Hi tech | Ping An vs. China Building Material |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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