Correlation Between Changjiang Jinggong and Ping An
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By analyzing existing cross correlation between Changjiang Jinggong Steel and Ping An Insurance, you can compare the effects of market volatilities on Changjiang Jinggong 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 Changjiang Jinggong with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changjiang Jinggong and Ping An.
Diversification Opportunities for Changjiang Jinggong and Ping An
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Changjiang and Ping is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Changjiang Jinggong Steel 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 Changjiang Jinggong 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 Changjiang Jinggong Steel 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 Changjiang Jinggong i.e., Changjiang Jinggong and Ping An go up and down completely randomly.
Pair Corralation between Changjiang Jinggong and Ping An
Assuming the 90 days trading horizon Changjiang Jinggong Steel is expected to generate 0.82 times more return on investment than Ping An. However, Changjiang Jinggong Steel is 1.22 times less risky than Ping An. It trades about 0.17 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 240.00 in Changjiang Jinggong Steel on August 28, 2024 and sell it today you would earn a total of 61.00 from holding Changjiang Jinggong Steel or generate 25.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changjiang Jinggong Steel vs. Ping An Insurance
Performance |
| Timeline |
| Changjiang Jinggong Steel |
| Ping An Insurance |
Changjiang Jinggong and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changjiang Jinggong and Ping An
The main advantage of trading using opposite Changjiang Jinggong and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changjiang Jinggong 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.| Changjiang Jinggong vs. Ming Yang Smart | Changjiang Jinggong vs. 159681 | Changjiang Jinggong vs. 159005 | Changjiang Jinggong vs. Loctek Ergonomic Technology |
| 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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