Correlation Between Ping An and Xiandai Investment
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By analyzing existing cross correlation between Ping An Insurance and Xiandai Investment Co, you can compare the effects of market volatilities on Ping An and Xiandai Investment 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 Xiandai Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Xiandai Investment.
Diversification Opportunities for Ping An and Xiandai Investment
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ping and Xiandai is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Xiandai Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiandai Investment 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 Xiandai Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiandai Investment has no effect on the direction of Ping An i.e., Ping An and Xiandai Investment go up and down completely randomly.
Pair Corralation between Ping An and Xiandai Investment
Assuming the 90 days trading horizon Ping An Insurance is expected to under-perform the Xiandai Investment. But the stock apears to be less risky and, when comparing its historical volatility, Ping An Insurance is 1.33 times less risky than Xiandai Investment. The stock trades about -0.1 of its potential returns per unit of risk. The Xiandai Investment Co is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 403.00 in Xiandai Investment Co on August 24, 2024 and sell it today you would earn a total of 54.00 from holding Xiandai Investment Co or generate 13.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Xiandai Investment Co
Performance |
| Timeline |
| Ping An Insurance |
| Xiandai Investment |
Ping An and Xiandai Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Xiandai Investment
The main advantage of trading using opposite Ping An and Xiandai Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Xiandai Investment 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 Xiandai Investment will offset losses from the drop in Xiandai Investment's long position.| Ping An vs. Beijing Wandong Medical | Ping An vs. Hainan Mining Co | Ping An vs. Guangzhou Haozhi Industrial | Ping An vs. Allmed Medical Products |
| Xiandai Investment vs. Tieling Newcity Investment | Xiandai Investment vs. Cangzhou Mingzhu Plastic | Xiandai Investment vs. Fuda Alloy Materials | Xiandai Investment vs. Shaanxi Energy Investment |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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