Correlation Between CIG PANNONIA and PING AN
Can any of the company-specific risk be diversified away by investing in both CIG PANNONIA and PING AN at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CIG PANNONIA and PING AN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CIG PANNONIA LIFE and PING AN INSURANCH, you can compare the effects of market volatilities on CIG PANNONIA 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 CIG PANNONIA with a short position of PING AN. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIG PANNONIA and PING AN.
Diversification Opportunities for CIG PANNONIA and PING AN
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CIG and PING is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding CIG PANNONIA LIFE and PING AN INSURANCH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PING AN INSURANCH and CIG PANNONIA 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 CIG PANNONIA LIFE 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 INSURANCH has no effect on the direction of CIG PANNONIA i.e., CIG PANNONIA and PING AN go up and down completely randomly.
Pair Corralation between CIG PANNONIA and PING AN
Assuming the 90 days trading horizon CIG PANNONIA LIFE is expected to generate 0.7 times more return on investment than PING AN. However, CIG PANNONIA LIFE is 1.44 times less risky than PING AN. It trades about 0.48 of its potential returns per unit of risk. PING AN INSURANCH is currently generating about -0.29 per unit of risk. If you would invest 85.00 in CIG PANNONIA LIFE on October 25, 2024 and sell it today you would earn a total of 11.00 from holding CIG PANNONIA LIFE or generate 12.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CIG PANNONIA LIFE vs. PING AN INSURANCH
Performance |
| Timeline |
| CIG PANNONIA LIFE |
| PING AN INSURANCH |
CIG PANNONIA and PING AN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIG PANNONIA and PING AN
The main advantage of trading using opposite CIG PANNONIA and PING AN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIG PANNONIA 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.| CIG PANNONIA vs. Diamyd Medical AB | CIG PANNONIA vs. Meli Hotels International | CIG PANNONIA vs. Park Hotels Resorts | CIG PANNONIA vs. Apollo Medical Holdings |
| PING AN vs. JSC Halyk bank | PING AN vs. T MOBILE US | PING AN vs. Erste Group Bank | PING AN vs. Ameriprise Financial |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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