Correlation Between China Petroleum and Ping An
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By analyzing existing cross correlation between China Petroleum Chemical and Ping An Insurance, you can compare the effects of market volatilities on China Petroleum 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 China Petroleum with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Ping An.
Diversification Opportunities for China Petroleum and Ping An
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Ping is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum 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 China Petroleum 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 China Petroleum 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 China Petroleum i.e., China Petroleum and Ping An go up and down completely randomly.
Pair Corralation between China Petroleum and Ping An
Assuming the 90 days trading horizon China Petroleum Chemical is expected to generate 0.9 times more return on investment than Ping An. However, China Petroleum Chemical is 1.11 times less risky than Ping An. It trades about 0.06 of its potential returns per unit of risk. Ping An Insurance is currently generating about 0.03 per unit of risk. If you would invest 439.00 in China Petroleum Chemical on August 29, 2024 and sell it today you would earn a total of 197.00 from holding China Petroleum Chemical or generate 44.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Petroleum Chemical vs. Ping An Insurance
Performance |
| Timeline |
| China Petroleum Chemical |
| Ping An Insurance |
China Petroleum and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Ping An
The main advantage of trading using opposite China Petroleum and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum 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.| China Petroleum vs. Anhui Huilong Agricultural | China Petroleum vs. Chinese Universe Publishing | China Petroleum vs. Shanghai Action Education | China Petroleum vs. Time Publishing and |
| Ping An vs. Kweichow Moutai Co | Ping An vs. Contemporary Amperex Technology | Ping An vs. G bits Network Technology | Ping An vs. BYD Co Ltd |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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