Correlation Between Ping An and Zhongrun Resources
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By analyzing existing cross correlation between Ping An Insurance and Zhongrun Resources Investment, you can compare the effects of market volatilities on Ping An and Zhongrun Resources 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 Zhongrun Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Zhongrun Resources.
Diversification Opportunities for Ping An and Zhongrun Resources
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ping and Zhongrun is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Zhongrun Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongrun Resources 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 Zhongrun Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongrun Resources has no effect on the direction of Ping An i.e., Ping An and Zhongrun Resources go up and down completely randomly.
Pair Corralation between Ping An and Zhongrun Resources
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 0.42 times more return on investment than Zhongrun Resources. However, Ping An Insurance is 2.38 times less risky than Zhongrun Resources. It trades about 0.03 of its potential returns per unit of risk. Zhongrun Resources Investment is currently generating about 0.0 per unit of risk. If you would invest 4,807 in Ping An Insurance on September 26, 2024 and sell it today you would earn a total of 571.00 from holding Ping An Insurance or generate 11.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.66% |
| Values | Daily Returns |
Ping An Insurance vs. Zhongrun Resources Investment
Performance |
| Timeline |
| Ping An Insurance |
| Zhongrun Resources |
Ping An and Zhongrun Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Zhongrun Resources
The main advantage of trading using opposite Ping An and Zhongrun Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Zhongrun Resources 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 Zhongrun Resources will offset losses from the drop in Zhongrun Resources' 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 |
| Zhongrun Resources vs. PetroChina Co Ltd | Zhongrun Resources vs. China Mobile Limited | Zhongrun Resources vs. CNOOC Limited | Zhongrun Resources 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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