Correlation Between Liuzhou Chemical and Ping An
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By analyzing existing cross correlation between Liuzhou Chemical Industry and Ping An Bank, you can compare the effects of market volatilities on Liuzhou Chemical 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 Liuzhou Chemical with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liuzhou Chemical and Ping An.
Diversification Opportunities for Liuzhou Chemical and Ping An
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Liuzhou and Ping is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Liuzhou Chemical Industry 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 Liuzhou Chemical 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 Liuzhou Chemical Industry 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 Liuzhou Chemical i.e., Liuzhou Chemical and Ping An go up and down completely randomly.
Pair Corralation between Liuzhou Chemical and Ping An
Assuming the 90 days trading horizon Liuzhou Chemical is expected to generate 1.41 times less return on investment than Ping An. In addition to that, Liuzhou Chemical is 2.25 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 0.09 per unit of volatility. If you would invest 1,137 in Ping An Bank on December 4, 2024 and sell it today you would earn a total of 14.00 from holding Ping An Bank or generate 1.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Liuzhou Chemical Industry vs. Ping An Bank
Performance |
| Timeline |
| Liuzhou Chemical Industry |
| Ping An Bank |
Liuzhou Chemical and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liuzhou Chemical and Ping An
The main advantage of trading using opposite Liuzhou Chemical and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liuzhou Chemical 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.| Liuzhou Chemical vs. Eyebright Medical Technology | Liuzhou Chemical vs. Keeson Technology Corp | Liuzhou Chemical vs. INKON Life Technology | Liuzhou Chemical vs. Olympic Circuit Technology |
| Ping An vs. iSoftStone Information Technology | Ping An vs. Sichuan Fulin Transportation | Ping An vs. Silkroad Visual Technology | Ping An vs. HUAQIN TECHNOLOGY 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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