Correlation Between Beijing Wandong and Ping An
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By analyzing existing cross correlation between Beijing Wandong Medical and Ping An Insurance, you can compare the effects of market volatilities on Beijing Wandong 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 Beijing Wandong with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Wandong and Ping An.
Diversification Opportunities for Beijing Wandong and Ping An
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Ping is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Wandong Medical 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 Beijing Wandong 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 Beijing Wandong Medical 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 Beijing Wandong i.e., Beijing Wandong and Ping An go up and down completely randomly.
Pair Corralation between Beijing Wandong and Ping An
Assuming the 90 days trading horizon Beijing Wandong Medical is expected to generate 1.05 times more return on investment than Ping An. However, Beijing Wandong is 1.05 times more volatile than Ping An Insurance. It trades about 0.21 of its potential returns per unit of risk. Ping An Insurance is currently generating about 0.13 per unit of risk. If you would invest 1,204 in Beijing Wandong Medical on August 28, 2024 and sell it today you would earn a total of 516.00 from holding Beijing Wandong Medical or generate 42.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Wandong Medical vs. Ping An Insurance
Performance |
| Timeline |
| Beijing Wandong Medical |
| Ping An Insurance |
Beijing Wandong and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Wandong and Ping An
The main advantage of trading using opposite Beijing Wandong and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Wandong 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.| Beijing Wandong vs. Harbin Air Conditioning | Beijing Wandong vs. Weihai Honglin Electronic | Beijing Wandong vs. Techshine Electronics Co | Beijing Wandong vs. Unigroup Guoxin Microelectronics |
| 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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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