Correlation Between Ping An and Xian International
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By analyzing existing cross correlation between Ping An Insurance and Xian International Medical, you can compare the effects of market volatilities on Ping An and Xian International 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 Xian International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Xian International.
Diversification Opportunities for Ping An and Xian International
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ping and Xian is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Xian International Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xian International 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 Xian International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xian International has no effect on the direction of Ping An i.e., Ping An and Xian International go up and down completely randomly.
Pair Corralation between Ping An and Xian International
Assuming the 90 days trading horizon Ping An Insurance is expected to under-perform the Xian International. But the stock apears to be less risky and, when comparing its historical volatility, Ping An Insurance is 1.91 times less risky than Xian International. The stock trades about -0.09 of its potential returns per unit of risk. The Xian International Medical is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 539.00 in Xian International Medical on September 5, 2024 and sell it today you would earn a total of 79.00 from holding Xian International Medical or generate 14.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Xian International Medical
Performance |
| Timeline |
| Ping An Insurance |
| Xian International |
Ping An and Xian International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Xian International
The main advantage of trading using opposite Ping An and Xian International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Xian International 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 Xian International will offset losses from the drop in Xian International's long position.| Ping An vs. Southchip Semiconductor Technology | Ping An vs. Allwin Telecommunication Co | Ping An vs. Sunwave Communications Co | Ping An vs. Iat Automobile Technology |
| Xian International vs. Industrial and Commercial | Xian International vs. Agricultural Bank of | Xian International vs. China Construction Bank | Xian International vs. Bank of China |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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