Correlation Between Ping An and XinJiang GuoTong
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By analyzing existing cross correlation between Ping An Insurance and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on Ping An and XinJiang GuoTong 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 XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and XinJiang GuoTong.
Diversification Opportunities for Ping An and XinJiang GuoTong
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ping and XinJiang is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and XinJiang GuoTong Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XinJiang GuoTong Pipeline 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 XinJiang GuoTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XinJiang GuoTong Pipeline has no effect on the direction of Ping An i.e., Ping An and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between Ping An and XinJiang GuoTong
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 0.62 times more return on investment than XinJiang GuoTong. However, Ping An Insurance is 1.6 times less risky than XinJiang GuoTong. It trades about 0.03 of its potential returns per unit of risk. XinJiang GuoTong Pipeline is currently generating about 0.0 per unit of risk. If you would invest 4,449 in Ping An Insurance on September 12, 2024 and sell it today you would earn a total of 1,113 from holding Ping An Insurance or generate 25.02% 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. XinJiang GuoTong Pipeline
Performance |
| Timeline |
| Ping An Insurance |
| XinJiang GuoTong Pipeline |
Ping An and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and XinJiang GuoTong
The main advantage of trading using opposite Ping An and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, XinJiang GuoTong 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 XinJiang GuoTong will offset losses from the drop in XinJiang GuoTong's long position.| Ping An vs. China Petroleum Chemical | Ping An vs. PetroChina Co Ltd | Ping An vs. China Mobile Limited | Ping An vs. Industrial and Commercial |
| XinJiang GuoTong vs. Agricultural Bank of | XinJiang GuoTong vs. Industrial and Commercial | XinJiang GuoTong vs. Bank of China | XinJiang GuoTong vs. PetroChina Co Ltd |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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