Correlation Between Ping An and Yunnan Yuntou
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By analyzing existing cross correlation between Ping An Insurance and Yunnan Yuntou Ecology, you can compare the effects of market volatilities on Ping An and Yunnan Yuntou 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 Yunnan Yuntou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Yunnan Yuntou.
Diversification Opportunities for Ping An and Yunnan Yuntou
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ping and Yunnan is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Yunnan Yuntou Ecology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Yuntou Ecology 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 Yunnan Yuntou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Yuntou Ecology has no effect on the direction of Ping An i.e., Ping An and Yunnan Yuntou go up and down completely randomly.
Pair Corralation between Ping An and Yunnan Yuntou
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 0.87 times more return on investment than Yunnan Yuntou. However, Ping An Insurance is 1.15 times less risky than Yunnan Yuntou. It trades about 0.03 of its potential returns per unit of risk. Yunnan Yuntou Ecology is currently generating about -0.01 per unit of risk. If you would invest 4,573 in Ping An Insurance on August 29, 2024 and sell it today you would earn a total of 782.00 from holding Ping An Insurance or generate 17.1% 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. Yunnan Yuntou Ecology
Performance |
| Timeline |
| Ping An Insurance |
| Yunnan Yuntou Ecology |
Ping An and Yunnan Yuntou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Yunnan Yuntou
The main advantage of trading using opposite Ping An and Yunnan Yuntou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Yunnan Yuntou 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 Yunnan Yuntou will offset losses from the drop in Yunnan Yuntou's long position.| Ping An vs. Kweichow Moutai Co | Ping An vs. Contemporary Amperex Technology | Ping An vs. G bits Network Technology | Ping An vs. BYD Co Ltd |
| Yunnan Yuntou vs. Huafa Industrial Co | Yunnan Yuntou vs. Chengtun Mining Group | Yunnan Yuntou vs. Gansu Yasheng Industrial | Yunnan Yuntou vs. Rising Nonferrous Metals |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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