Correlation Between Ping An and Tieling Newcity
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By analyzing existing cross correlation between Ping An Insurance and Tieling Newcity Investment, you can compare the effects of market volatilities on Ping An and Tieling Newcity 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 Tieling Newcity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Tieling Newcity.
Diversification Opportunities for Ping An and Tieling Newcity
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ping and Tieling is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Tieling Newcity Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tieling Newcity Inve 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 Tieling Newcity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tieling Newcity Inve has no effect on the direction of Ping An i.e., Ping An and Tieling Newcity go up and down completely randomly.
Pair Corralation between Ping An and Tieling Newcity
Assuming the 90 days trading horizon Ping An Insurance is expected to under-perform the Tieling Newcity. But the stock apears to be less risky and, when comparing its historical volatility, Ping An Insurance is 1.13 times less risky than Tieling Newcity. The stock trades about -0.14 of its potential returns per unit of risk. The Tieling Newcity Investment is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 230.00 in Tieling Newcity Investment on September 3, 2024 and sell it today you would earn a total of 38.00 from holding Tieling Newcity Investment or generate 16.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Tieling Newcity Investment
Performance |
| Timeline |
| Ping An Insurance |
| Tieling Newcity Inve |
Ping An and Tieling Newcity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Tieling Newcity
The main advantage of trading using opposite Ping An and Tieling Newcity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Tieling Newcity 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 Tieling Newcity will offset losses from the drop in Tieling Newcity's long position.| Ping An vs. Guizhou BroadcastingTV Info | Ping An vs. Pengxin International Mining | Ping An vs. Hainan Mining Co | Ping An vs. Uroica Mining Safety |
| Tieling Newcity vs. China World Trade | Tieling Newcity vs. FSPG Hi Tech Co | Tieling Newcity vs. Jiangxi Hengda Hi Tech | Tieling Newcity vs. Xinjiang Communications Construction |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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