Correlation Between Ping An and Sichuan Yahua
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By analyzing existing cross correlation between Ping An Insurance and Sichuan Yahua Industrial, you can compare the effects of market volatilities on Ping An and Sichuan Yahua 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 Sichuan Yahua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Sichuan Yahua.
Diversification Opportunities for Ping An and Sichuan Yahua
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ping and Sichuan is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Sichuan Yahua Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Yahua Industrial 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 Sichuan Yahua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Yahua Industrial has no effect on the direction of Ping An i.e., Ping An and Sichuan Yahua go up and down completely randomly.
Pair Corralation between Ping An and Sichuan Yahua
Assuming the 90 days trading horizon Ping An Insurance is expected to under-perform the Sichuan Yahua. But the stock apears to be less risky and, when comparing its historical volatility, Ping An Insurance is 1.39 times less risky than Sichuan Yahua. The stock trades about -0.16 of its potential returns per unit of risk. The Sichuan Yahua Industrial is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,061 in Sichuan Yahua Industrial on August 29, 2024 and sell it today you would earn a total of 97.00 from holding Sichuan Yahua Industrial or generate 9.14% 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. Sichuan Yahua Industrial
Performance |
| Timeline |
| Ping An Insurance |
| Sichuan Yahua Industrial |
Ping An and Sichuan Yahua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Sichuan Yahua
The main advantage of trading using opposite Ping An and Sichuan Yahua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Sichuan Yahua 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 Sichuan Yahua will offset losses from the drop in Sichuan Yahua'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 |
| Sichuan Yahua vs. Baoshan Iron Steel | Sichuan Yahua vs. Shandong Gold Mining | Sichuan Yahua vs. Rongsheng Petrochemical Co | Sichuan Yahua vs. Inner Mongolia BaoTou |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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