Correlation Between SOL-GEL TECHN and Ping An
Can any of the company-specific risk be diversified away by investing in both SOL-GEL TECHN 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 SOL-GEL TECHN and Ping An into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SOL GEL TECHN IS 10 and Ping An Insurance, you can compare the effects of market volatilities on SOL-GEL TECHN 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 SOL-GEL TECHN with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOL-GEL TECHN and Ping An.
Diversification Opportunities for SOL-GEL TECHN and Ping An
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between SOL-GEL and Ping is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding SOL GEL TECHN IS 10 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 SOL-GEL TECHN 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 SOL GEL TECHN IS 10 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 SOL-GEL TECHN i.e., SOL-GEL TECHN and Ping An go up and down completely randomly.
Pair Corralation between SOL-GEL TECHN and Ping An
Assuming the 90 days horizon SOL GEL TECHN IS 10 is expected to under-perform the Ping An. In addition to that, SOL-GEL TECHN is 1.87 times more volatile than Ping An Insurance. It trades about -0.03 of its total potential returns per unit of risk. Ping An Insurance is currently generating about 0.08 per unit of volatility. If you would invest 236.00 in Ping An Insurance on September 12, 2024 and sell it today you would earn a total of 345.00 from holding Ping An Insurance or generate 146.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SOL GEL TECHN IS 10 vs. Ping An Insurance
Performance |
| Timeline |
| SOL GEL TECHN |
| Ping An Insurance |
SOL-GEL TECHN and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOL-GEL TECHN and Ping An
The main advantage of trading using opposite SOL-GEL TECHN and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOL-GEL TECHN 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.| SOL-GEL TECHN vs. Ping An Insurance | SOL-GEL TECHN vs. Goosehead Insurance | SOL-GEL TECHN vs. GALENA MINING LTD | SOL-GEL TECHN vs. Jacquet Metal Service |
| Ping An vs. Nippon Steel | Ping An vs. REVO INSURANCE SPA | Ping An vs. ALGOMA STEEL GROUP | Ping An vs. LEGACY IRON ORE |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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