Correlation Between Ping An and China Union
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By analyzing existing cross correlation between Ping An Insurance and China Union Holdings, you can compare the effects of market volatilities on Ping An and China Union 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 Ping An with a short position of China Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and China Union.
Diversification Opportunities for Ping An and China Union
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ping and China is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and China Union Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Union Holdings and Ping An 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 Ping An Insurance are associated (or correlated) with China Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Union Holdings has no effect on the direction of Ping An i.e., Ping An and China Union go up and down completely randomly.
Pair Corralation between Ping An and China Union
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 0.8 times more return on investment than China Union. However, Ping An Insurance is 1.26 times less risky than China Union. It trades about 0.02 of its potential returns per unit of risk. China Union Holdings is currently generating about 0.02 per unit of risk. If you would invest 4,745 in Ping An Insurance on September 26, 2024 and sell it today you would earn a total of 633.00 from holding Ping An Insurance or generate 13.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Ping An Insurance vs. China Union Holdings
Performance |
| Timeline |
| Ping An Insurance |
| China Union Holdings |
Ping An and China Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and China Union
The main advantage of trading using opposite Ping An and China Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, China Union 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 China Union will offset losses from the drop in China Union's long position.| Ping An vs. Kweichow Moutai Co | Ping An vs. Shenzhen Mindray Bio Medical | Ping An vs. Jiangsu Pacific Quartz | Ping An vs. G bits Network Technology |
| China Union vs. PetroChina Co Ltd | China Union vs. China Mobile Limited | China Union vs. CNOOC Limited | China Union vs. Ping An Insurance |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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