Correlation Between Renxin New and Ping An
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By analyzing existing cross correlation between Renxin New Material and Ping An Bank, you can compare the effects of market volatilities on Renxin New 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 Renxin New with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Renxin New and Ping An.
Diversification Opportunities for Renxin New and Ping An
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Renxin and Ping is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Renxin New Material and Ping An Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ping An Bank and Renxin New 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 Renxin New Material 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 Bank has no effect on the direction of Renxin New i.e., Renxin New and Ping An go up and down completely randomly.
Pair Corralation between Renxin New and Ping An
Assuming the 90 days trading horizon Renxin New Material is expected to under-perform the Ping An. In addition to that, Renxin New is 2.44 times more volatile than Ping An Bank. It trades about -0.03 of its total potential returns per unit of risk. Ping An Bank is currently generating about -0.02 per unit of volatility. If you would invest 1,333 in Ping An Bank on September 4, 2024 and sell it today you would lose (194.00) from holding Ping An Bank or give up 14.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 76.32% |
| Values | Daily Returns |
Renxin New Material vs. Ping An Bank
Performance |
| Timeline |
| Renxin New Material |
| Ping An Bank |
Renxin New and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Renxin New and Ping An
The main advantage of trading using opposite Renxin New and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Renxin New 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.| Renxin New vs. Zijin Mining Group | Renxin New vs. Wanhua Chemical Group | Renxin New vs. Baoshan Iron Steel | Renxin New vs. Shandong Gold Mining |
| Ping An vs. Zoje Resources Investment | Ping An vs. Hunan Investment Group | Ping An vs. Long Yuan Construction | Ping An vs. Guangdong Jinming Machinery |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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