Correlation Between Shandong Ruifeng and Ping An
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By analyzing existing cross correlation between Shandong Ruifeng Chemical and Ping An Insurance, you can compare the effects of market volatilities on Shandong Ruifeng 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 Shandong Ruifeng with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Ruifeng and Ping An.
Diversification Opportunities for Shandong Ruifeng and Ping An
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shandong and Ping is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Ruifeng 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 Shandong Ruifeng 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 Shandong Ruifeng 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 Shandong Ruifeng i.e., Shandong Ruifeng and Ping An go up and down completely randomly.
Pair Corralation between Shandong Ruifeng and Ping An
Assuming the 90 days trading horizon Shandong Ruifeng Chemical is expected to generate 2.34 times more return on investment than Ping An. However, Shandong Ruifeng is 2.34 times more volatile than Ping An Insurance. It trades about 0.26 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 991.00 in Shandong Ruifeng Chemical on August 28, 2024 and sell it today you would earn a total of 300.00 from holding Shandong Ruifeng Chemical or generate 30.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Ruifeng Chemical vs. Ping An Insurance
Performance |
| Timeline |
| Shandong Ruifeng Chemical |
| Ping An Insurance |
Shandong Ruifeng and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Ruifeng and Ping An
The main advantage of trading using opposite Shandong Ruifeng and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Ruifeng 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.| Shandong Ruifeng vs. Bloomage Biotechnology Corp | Shandong Ruifeng vs. Unigroup Guoxin Microelectronics | Shandong Ruifeng vs. Epoxy Base Electronic | Shandong Ruifeng vs. Techshine Electronics 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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