Correlation Between Ping An and Shenwu Energy
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By analyzing existing cross correlation between Ping An Insurance and Shenwu Energy Saving, you can compare the effects of market volatilities on Ping An and Shenwu Energy 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 Shenwu Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Shenwu Energy.
Diversification Opportunities for Ping An and Shenwu Energy
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ping and Shenwu is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Shenwu Energy Saving in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenwu Energy Saving 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 Shenwu Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenwu Energy Saving has no effect on the direction of Ping An i.e., Ping An and Shenwu Energy go up and down completely randomly.
Pair Corralation between Ping An and Shenwu Energy
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 0.53 times more return on investment than Shenwu Energy. However, Ping An Insurance is 1.88 times less risky than Shenwu Energy. It trades about 0.04 of its potential returns per unit of risk. Shenwu Energy Saving is currently generating about 0.0 per unit of risk. If you would invest 4,331 in Ping An Insurance on September 14, 2024 and sell it today you would earn a total of 1,227 from holding Ping An Insurance or generate 28.33% 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. Shenwu Energy Saving
Performance |
| Timeline |
| Ping An Insurance |
| Shenwu Energy Saving |
Ping An and Shenwu Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Shenwu Energy
The main advantage of trading using opposite Ping An and Shenwu Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Shenwu Energy 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 Shenwu Energy will offset losses from the drop in Shenwu Energy's long position.| Ping An vs. BYD Co Ltd | Ping An vs. China Mobile Limited | Ping An vs. Agricultural Bank of | Ping An vs. Industrial and Commercial |
| Shenwu Energy vs. Lutian Machinery Co | Shenwu Energy vs. China Longyuan Power | Shenwu Energy vs. PetroChina Co Ltd | Shenwu Energy 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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