Correlation Between Ping An and Lianhe Chemical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ping An Insurance and Lianhe Chemical Technology, you can compare the effects of market volatilities on Ping An and Lianhe Chemical 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 Lianhe Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Lianhe Chemical.
Diversification Opportunities for Ping An and Lianhe Chemical
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ping and Lianhe is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Lianhe Chemical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lianhe Chemical Tech 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 Lianhe Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lianhe Chemical Tech has no effect on the direction of Ping An i.e., Ping An and Lianhe Chemical go up and down completely randomly.
Pair Corralation between Ping An and Lianhe Chemical
Assuming the 90 days trading horizon Ping An Insurance is expected to under-perform the Lianhe Chemical. But the stock apears to be less risky and, when comparing its historical volatility, Ping An Insurance is 2.44 times less risky than Lianhe Chemical. The stock trades about -0.23 of its potential returns per unit of risk. The Lianhe Chemical Technology is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 558.00 in Lianhe Chemical Technology on October 24, 2024 and sell it today you would earn a total of 39.00 from holding Lianhe Chemical Technology or generate 6.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Lianhe Chemical Technology
Performance |
| Timeline |
| Ping An Insurance |
| Lianhe Chemical Tech |
Ping An and Lianhe Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Lianhe Chemical
The main advantage of trading using opposite Ping An and Lianhe Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Lianhe Chemical 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 Lianhe Chemical will offset losses from the drop in Lianhe Chemical's long position.| Ping An vs. Shanghai Jinfeng Wine | Ping An vs. Ningxia Younglight Chemicals | Ping An vs. Maoming Petro Chemical Shihua | Ping An vs. Shenzhen Noposion Agrochemicals |
| Lianhe Chemical vs. Central Plains Environment | Lianhe Chemical vs. Thunder Software Technology | Lianhe Chemical vs. Shanghai Newtouch Software | Lianhe Chemical vs. Changjiang Jinggong Steel |
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.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |