Correlation Between Ping An and Jiangsu Changfa
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By analyzing existing cross correlation between Ping An Insurance and Jiangsu Changfa Refrigeration, you can compare the effects of market volatilities on Ping An and Jiangsu Changfa 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 Jiangsu Changfa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Jiangsu Changfa.
Diversification Opportunities for Ping An and Jiangsu Changfa
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ping and Jiangsu is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Jiangsu Changfa Refrigeration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Changfa Refr 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 Jiangsu Changfa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Changfa Refr has no effect on the direction of Ping An i.e., Ping An and Jiangsu Changfa go up and down completely randomly.
Pair Corralation between Ping An and Jiangsu Changfa
Assuming the 90 days trading horizon Ping An Insurance is expected to under-perform the Jiangsu Changfa. But the stock apears to be less risky and, when comparing its historical volatility, Ping An Insurance is 1.32 times less risky than Jiangsu Changfa. The stock trades about -0.19 of its potential returns per unit of risk. The Jiangsu Changfa Refrigeration is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 501.00 in Jiangsu Changfa Refrigeration on September 6, 2024 and sell it today you would lose (19.00) from holding Jiangsu Changfa Refrigeration or give up 3.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Jiangsu Changfa Refrigeration
Performance |
| Timeline |
| Ping An Insurance |
| Jiangsu Changfa Refr |
Ping An and Jiangsu Changfa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Jiangsu Changfa
The main advantage of trading using opposite Ping An and Jiangsu Changfa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Jiangsu Changfa 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 Jiangsu Changfa will offset losses from the drop in Jiangsu Changfa's long position.| Ping An vs. Dook Media Group | Ping An vs. Lander Sports Development | Ping An vs. Fuda Alloy Materials | Ping An vs. Western Metal Materials |
| Jiangsu Changfa vs. Lander Sports Development | Jiangsu Changfa vs. Anhui Huaertai Chemical | Jiangsu Changfa vs. Jiangsu Jinling Sports | Jiangsu Changfa vs. Sportsoul 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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