Correlation Between Ping An and Beijing Mainstreets
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By analyzing existing cross correlation between Ping An Insurance and Beijing Mainstreets Investment, you can compare the effects of market volatilities on Ping An and Beijing Mainstreets 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 Beijing Mainstreets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Beijing Mainstreets.
Diversification Opportunities for Ping An and Beijing Mainstreets
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ping and Beijing is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Beijing Mainstreets Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Mainstreets 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 Beijing Mainstreets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Mainstreets has no effect on the direction of Ping An i.e., Ping An and Beijing Mainstreets go up and down completely randomly.
Pair Corralation between Ping An and Beijing Mainstreets
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 0.4 times more return on investment than Beijing Mainstreets. However, Ping An Insurance is 2.5 times less risky than Beijing Mainstreets. It trades about 0.09 of its potential returns per unit of risk. Beijing Mainstreets Investment is currently generating about -0.21 per unit of risk. If you would invest 5,257 in Ping An Insurance on September 25, 2024 and sell it today you would earn a total of 121.00 from holding Ping An Insurance or generate 2.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Beijing Mainstreets Investment
Performance |
| Timeline |
| Ping An Insurance |
| Beijing Mainstreets |
Ping An and Beijing Mainstreets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Beijing Mainstreets
The main advantage of trading using opposite Ping An and Beijing Mainstreets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Beijing Mainstreets 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 Beijing Mainstreets will offset losses from the drop in Beijing Mainstreets' 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 |
| Beijing Mainstreets vs. PetroChina Co Ltd | Beijing Mainstreets vs. China Mobile Limited | Beijing Mainstreets vs. CNOOC Limited | Beijing Mainstreets 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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