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
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ping and Jiangsu is 0.87. 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 generate 0.55 times more return on investment than Jiangsu Changfa. However, Ping An Insurance is 1.8 times less risky than Jiangsu Changfa. It trades about 0.09 of its potential returns per unit of risk. Jiangsu Changfa Refrigeration is currently generating about 0.01 per unit of risk. If you would invest 3,879 in Ping An Insurance on September 10, 2024 and sell it today you would earn a total of 1,604 from holding Ping An Insurance or generate 41.35% 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. 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. Gansu Jiu Steel | Ping An vs. Ming Yang Smart | Ping An vs. Aba Chemicals Corp | Ping An vs. Inner Mongolia Yuan |
Jiangsu Changfa vs. Yunnan Jianzhijia Health Chain | Jiangsu Changfa vs. Uroica Mining Safety | Jiangsu Changfa vs. Chengtun Mining Group | Jiangsu Changfa vs. Xinjiang Baodi Mining |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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