Correlation Between Ping An and Shenzhen Clou
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By analyzing existing cross correlation between Ping An Insurance and Shenzhen Clou Electronics, you can compare the effects of market volatilities on Ping An and Shenzhen Clou 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 Shenzhen Clou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Shenzhen Clou.
Diversification Opportunities for Ping An and Shenzhen Clou
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ping and Shenzhen is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Shenzhen Clou Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Clou Electronics 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 Shenzhen Clou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Clou Electronics has no effect on the direction of Ping An i.e., Ping An and Shenzhen Clou go up and down completely randomly.
Pair Corralation between Ping An and Shenzhen Clou
Assuming the 90 days trading horizon Ping An Insurance is expected to under-perform the Shenzhen Clou. But the stock apears to be less risky and, when comparing its historical volatility, Ping An Insurance is 1.66 times less risky than Shenzhen Clou. The stock trades about -0.16 of its potential returns per unit of risk. The Shenzhen Clou Electronics is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 429.00 in Shenzhen Clou Electronics on August 29, 2024 and sell it today you would earn a total of 14.00 from holding Shenzhen Clou Electronics or generate 3.26% 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. Shenzhen Clou Electronics
Performance |
| Timeline |
| Ping An Insurance |
| Shenzhen Clou Electronics |
Ping An and Shenzhen Clou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Shenzhen Clou
The main advantage of trading using opposite Ping An and Shenzhen Clou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Shenzhen Clou 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 Shenzhen Clou will offset losses from the drop in Shenzhen Clou's long position.| Ping An vs. Ming Yang Smart | Ping An vs. 159681 | Ping An vs. 159005 | Ping An vs. Loctek Ergonomic Technology |
| Shenzhen Clou vs. Harbin Hatou Investment | Shenzhen Clou vs. Jointo Energy Investment | Shenzhen Clou vs. Xian International Medical | Shenzhen Clou vs. Cofoe Medical Technology |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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