Correlation Between Hubei Dinglong and Ping An
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By analyzing existing cross correlation between Hubei Dinglong Chemical and Ping An Insurance, you can compare the effects of market volatilities on Hubei Dinglong 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 Hubei Dinglong with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Dinglong and Ping An.
Diversification Opportunities for Hubei Dinglong and Ping An
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hubei and Ping is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Dinglong Chemical 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 Hubei Dinglong 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 Hubei Dinglong Chemical 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 Hubei Dinglong i.e., Hubei Dinglong and Ping An go up and down completely randomly.
Pair Corralation between Hubei Dinglong and Ping An
Assuming the 90 days trading horizon Hubei Dinglong Chemical is expected to generate 1.35 times more return on investment than Ping An. However, Hubei Dinglong is 1.35 times more volatile than Ping An Insurance. It trades about 0.0 of its potential returns per unit of risk. Ping An Insurance is currently generating about -0.18 per unit of risk. If you would invest 2,734 in Hubei Dinglong Chemical on August 28, 2024 and sell it today you would lose (23.00) from holding Hubei Dinglong Chemical or give up 0.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Dinglong Chemical vs. Ping An Insurance
Performance |
| Timeline |
| Hubei Dinglong Chemical |
| Ping An Insurance |
Hubei Dinglong and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Dinglong and Ping An
The main advantage of trading using opposite Hubei Dinglong and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Dinglong 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.| Hubei Dinglong vs. Zijin Mining Group | Hubei Dinglong vs. Baoshan Iron Steel | Hubei Dinglong vs. Shandong Gold Mining | Hubei Dinglong vs. Rongsheng Petrochemical Co |
| Ping An vs. Ming Yang Smart | Ping An vs. 159681 | Ping An vs. 159005 | Ping An vs. Loctek Ergonomic Technology |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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