Correlation Between Ping An and Der International
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By analyzing existing cross correlation between Ping An Insurance and Der International Home, you can compare the effects of market volatilities on Ping An and Der International 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 Der International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Der International.
Diversification Opportunities for Ping An and Der International
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ping and Der is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Der International Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Der International Home 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 Der International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Der International Home has no effect on the direction of Ping An i.e., Ping An and Der International go up and down completely randomly.
Pair Corralation between Ping An and Der International
Assuming the 90 days trading horizon Ping An Insurance is expected to under-perform the Der International. But the stock apears to be less risky and, when comparing its historical volatility, Ping An Insurance is 1.91 times less risky than Der International. The stock trades about -0.16 of its potential returns per unit of risk. The Der International Home is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 459.00 in Der International Home on September 15, 2024 and sell it today you would earn a total of 54.00 from holding Der International Home or generate 11.76% 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. Der International Home
Performance |
| Timeline |
| Ping An Insurance |
| Der International Home |
Ping An and Der International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Der International
The main advantage of trading using opposite Ping An and Der International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Der International 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 Der International will offset losses from the drop in Der International's long position.| Ping An vs. BYD Co Ltd | Ping An vs. China Mobile Limited | Ping An vs. Agricultural Bank of | Ping An vs. Industrial and Commercial |
| Der International vs. PetroChina Co Ltd | Der International vs. China Mobile Limited | Der International vs. CNOOC Limited | Der International vs. Ping An Insurance |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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