Correlation Between Ping An and Ningbo Tech
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By analyzing existing cross correlation between Ping An Insurance and Ningbo Tech Bank Co, you can compare the effects of market volatilities on Ping An and Ningbo Tech 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 Ningbo Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Ningbo Tech.
Diversification Opportunities for Ping An and Ningbo Tech
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ping and Ningbo is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Ningbo Tech Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Tech Bank 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 Ningbo Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Tech Bank has no effect on the direction of Ping An i.e., Ping An and Ningbo Tech go up and down completely randomly.
Pair Corralation between Ping An and Ningbo Tech
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 0.64 times more return on investment than Ningbo Tech. However, Ping An Insurance is 1.57 times less risky than Ningbo Tech. It trades about -0.08 of its potential returns per unit of risk. Ningbo Tech Bank Co is currently generating about -0.1 per unit of risk. If you would invest 5,325 in Ping An Insurance on October 30, 2024 and sell it today you would lose (240.00) from holding Ping An Insurance or give up 4.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Ningbo Tech Bank Co
Performance |
| Timeline |
| Ping An Insurance |
| Ningbo Tech Bank |
Ping An and Ningbo Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Ningbo Tech
The main advantage of trading using opposite Ping An and Ningbo Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Ningbo Tech 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 Ningbo Tech will offset losses from the drop in Ningbo Tech's long position.| Ping An vs. Xiamen Jihong Package | Ping An vs. Kingclean Electric Co | Ping An vs. Beijing Sanyuan Foods | Ping An vs. Shaanxi Meineng Clean |
| Ningbo Tech vs. Shanghai CEO Environmental | Ningbo Tech vs. Jinhe Biotechnology Co | Ningbo Tech vs. Kuang Chi Technologies | Ningbo Tech vs. Sharetronic Data 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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