Correlation Between Ping An and Luxi Chemical
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By analyzing existing cross correlation between Ping An Insurance and Luxi Chemical Group, you can compare the effects of market volatilities on Ping An and Luxi Chemical 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 Luxi Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Luxi Chemical.
Diversification Opportunities for Ping An and Luxi Chemical
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ping and Luxi is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Luxi Chemical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luxi Chemical Group 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 Luxi Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luxi Chemical Group has no effect on the direction of Ping An i.e., Ping An and Luxi Chemical go up and down completely randomly.
Pair Corralation between Ping An and Luxi Chemical
Assuming the 90 days trading horizon Ping An Insurance is expected to under-perform the Luxi Chemical. In addition to that, Ping An is 1.17 times more volatile than Luxi Chemical Group. It trades about -0.14 of its total potential returns per unit of risk. Luxi Chemical Group is currently generating about -0.06 per unit of volatility. If you would invest 1,195 in Luxi Chemical Group on August 29, 2024 and sell it today you would lose (35.00) from holding Luxi Chemical Group or give up 2.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Luxi Chemical Group
Performance |
| Timeline |
| Ping An Insurance |
| Luxi Chemical Group |
Ping An and Luxi Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Luxi Chemical
The main advantage of trading using opposite Ping An and Luxi Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Luxi Chemical 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 Luxi Chemical will offset losses from the drop in Luxi Chemical's long position.| Ping An vs. Kweichow Moutai Co | Ping An vs. Contemporary Amperex Technology | Ping An vs. G bits Network Technology | Ping An vs. BYD Co Ltd |
| Luxi Chemical vs. Nanjing Medlander Medical | Luxi Chemical vs. Allmed Medical Products | Luxi Chemical vs. Touchstone International Medical | Luxi Chemical vs. Xingguang Agricultural Mach |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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