Correlation Between Ping An and Shenzhen Sunlord
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By analyzing existing cross correlation between Ping An Insurance and Shenzhen Sunlord Electronics, you can compare the effects of market volatilities on Ping An and Shenzhen Sunlord 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 Sunlord. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Shenzhen Sunlord.
Diversification Opportunities for Ping An and Shenzhen Sunlord
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ping and Shenzhen is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Shenzhen Sunlord Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Sunlord Ele 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 Sunlord. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Sunlord Ele has no effect on the direction of Ping An i.e., Ping An and Shenzhen Sunlord go up and down completely randomly.
Pair Corralation between Ping An and Shenzhen Sunlord
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 0.77 times more return on investment than Shenzhen Sunlord. However, Ping An Insurance is 1.29 times less risky than Shenzhen Sunlord. It trades about 0.08 of its potential returns per unit of risk. Shenzhen Sunlord Electronics is currently generating about 0.04 per unit of risk. If you would invest 3,960 in Ping An Insurance on September 5, 2024 and sell it today you would earn a total of 1,483 from holding Ping An Insurance or generate 37.45% 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 Sunlord Electronics
Performance |
| Timeline |
| Ping An Insurance |
| Shenzhen Sunlord Ele |
Ping An and Shenzhen Sunlord Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Shenzhen Sunlord
The main advantage of trading using opposite Ping An and Shenzhen Sunlord positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Shenzhen Sunlord 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 Sunlord will offset losses from the drop in Shenzhen Sunlord's long position.| Ping An vs. Southchip Semiconductor Technology | Ping An vs. Allwin Telecommunication Co | Ping An vs. Sunwave Communications Co | Ping An vs. Iat Automobile Technology |
| Shenzhen Sunlord vs. Keli Sensing Technology | Shenzhen Sunlord vs. Guangzhou Zhujiang Brewery | Shenzhen Sunlord vs. Linewell Software Co | Shenzhen Sunlord vs. Anhui Transport Consulting |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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