Correlation Between Ping An and Ningxia Younglight
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By analyzing existing cross correlation between Ping An Insurance and Ningxia Younglight Chemicals, you can compare the effects of market volatilities on Ping An and Ningxia Younglight 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 Ningxia Younglight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Ningxia Younglight.
Diversification Opportunities for Ping An and Ningxia Younglight
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ping and Ningxia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Ningxia Younglight Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningxia Younglight 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 Ningxia Younglight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningxia Younglight has no effect on the direction of Ping An i.e., Ping An and Ningxia Younglight go up and down completely randomly.
Pair Corralation between Ping An and Ningxia Younglight
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 0.66 times more return on investment than Ningxia Younglight. However, Ping An Insurance is 1.52 times less risky than Ningxia Younglight. It trades about 0.08 of its potential returns per unit of risk. Ningxia Younglight Chemicals is currently generating about 0.04 per unit of risk. If you would invest 3,836 in Ping An Insurance on October 12, 2024 and sell it today you would earn a total of 1,145 from holding Ping An Insurance or generate 29.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Ningxia Younglight Chemicals
Performance |
| Timeline |
| Ping An Insurance |
| Ningxia Younglight |
Ping An and Ningxia Younglight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Ningxia Younglight
The main advantage of trading using opposite Ping An and Ningxia Younglight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Ningxia Younglight 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 Ningxia Younglight will offset losses from the drop in Ningxia Younglight's long position.| Ping An vs. Unisplendour Corp | Ping An vs. Konfoong Materials International | Ping An vs. Zhejiang JIULI Hi tech | Ping An vs. China Building Material |
| Ningxia Younglight vs. Zoje Resources Investment | Ningxia Younglight vs. Shanghai Material Trading | Ningxia Younglight vs. Vanfund Urban Investment | Ningxia Younglight vs. Postal Savings Bank |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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