Correlation Between Yangmei Chemical and Ping An
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By analyzing existing cross correlation between Yangmei Chemical Co and Ping An Bank, you can compare the effects of market volatilities on Yangmei 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 Yangmei Chemical with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yangmei Chemical and Ping An.
Diversification Opportunities for Yangmei Chemical and Ping An
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yangmei and Ping is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Yangmei Chemical Co 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 Yangmei 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 Yangmei Chemical Co 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 Yangmei Chemical i.e., Yangmei Chemical and Ping An go up and down completely randomly.
Pair Corralation between Yangmei Chemical and Ping An
Assuming the 90 days trading horizon Yangmei Chemical Co is expected to generate 1.89 times more return on investment than Ping An. However, Yangmei Chemical is 1.89 times more volatile than Ping An Bank. It trades about 0.07 of its potential returns per unit of risk. Ping An Bank is currently generating about 0.07 per unit of risk. If you would invest 204.00 in Yangmei Chemical Co on September 3, 2024 and sell it today you would earn a total of 47.00 from holding Yangmei Chemical Co or generate 23.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yangmei Chemical Co vs. Ping An Bank
Performance |
| Timeline |
| Yangmei Chemical |
| Ping An Bank |
Yangmei Chemical and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yangmei Chemical and Ping An
The main advantage of trading using opposite Yangmei Chemical and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yangmei 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.| Yangmei Chemical vs. Zijin Mining Group | Yangmei Chemical vs. Baoshan Iron Steel | Yangmei Chemical vs. Hoshine Silicon Ind |
| Ping An vs. Renxin New Material | Ping An vs. China Railway Materials | Ping An vs. Fiberhome Telecommunication Technologies | Ping An vs. Jinsanjiang Silicon Material |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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