Correlation Between Ping An and Qingdao Foods
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By analyzing existing cross correlation between Ping An Insurance and Qingdao Foods Co, you can compare the effects of market volatilities on Ping An and Qingdao Foods 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 Qingdao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Qingdao Foods.
Diversification Opportunities for Ping An and Qingdao Foods
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ping and Qingdao is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Qingdao Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Foods 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 Qingdao Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Foods has no effect on the direction of Ping An i.e., Ping An and Qingdao Foods go up and down completely randomly.
Pair Corralation between Ping An and Qingdao Foods
Assuming the 90 days trading horizon Ping An Insurance is expected to under-perform the Qingdao Foods. But the stock apears to be less risky and, when comparing its historical volatility, Ping An Insurance is 1.84 times less risky than Qingdao Foods. The stock trades about -0.14 of its potential returns per unit of risk. The Qingdao Foods Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,228 in Qingdao Foods Co on October 24, 2024 and sell it today you would earn a total of 127.00 from holding Qingdao Foods Co or generate 10.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Qingdao Foods Co
Performance |
| Timeline |
| Ping An Insurance |
| Qingdao Foods |
Ping An and Qingdao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Qingdao Foods
The main advantage of trading using opposite Ping An and Qingdao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Qingdao Foods 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 Qingdao Foods will offset losses from the drop in Qingdao Foods' long position.| Ping An vs. Shanghai Jinfeng Wine | Ping An vs. Ningxia Younglight Chemicals | Ping An vs. Maoming Petro Chemical Shihua | Ping An vs. Shenzhen Noposion Agrochemicals |
| Qingdao Foods vs. Chongqing Sulian Plastic | Qingdao Foods vs. Hainan Airlines Co | Qingdao Foods vs. Ping An Insurance | Qingdao Foods vs. Guosheng Financial Holding |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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