Correlation Between Ping An and Qinghai Huzhu
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By analyzing existing cross correlation between Ping An Insurance and Qinghai Huzhu Barley, you can compare the effects of market volatilities on Ping An and Qinghai Huzhu 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 Qinghai Huzhu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Qinghai Huzhu.
Diversification Opportunities for Ping An and Qinghai Huzhu
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ping and Qinghai is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Qinghai Huzhu Barley in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qinghai Huzhu Barley 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 Qinghai Huzhu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qinghai Huzhu Barley has no effect on the direction of Ping An i.e., Ping An and Qinghai Huzhu go up and down completely randomly.
Pair Corralation between Ping An and Qinghai Huzhu
Assuming the 90 days trading horizon Ping An Insurance is expected to under-perform the Qinghai Huzhu. But the stock apears to be less risky and, when comparing its historical volatility, Ping An Insurance is 1.3 times less risky than Qinghai Huzhu. The stock trades about -0.18 of its potential returns per unit of risk. The Qinghai Huzhu Barley is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,064 in Qinghai Huzhu Barley on August 27, 2024 and sell it today you would lose (5.00) from holding Qinghai Huzhu Barley or give up 0.47% 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. Qinghai Huzhu Barley
Performance |
| Timeline |
| Ping An Insurance |
| Qinghai Huzhu Barley |
Ping An and Qinghai Huzhu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Qinghai Huzhu
The main advantage of trading using opposite Ping An and Qinghai Huzhu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Qinghai Huzhu 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 Qinghai Huzhu will offset losses from the drop in Qinghai Huzhu's long position.| Ping An vs. Ming Yang Smart | Ping An vs. 159681 | Ping An vs. 159005 | Ping An vs. Loctek Ergonomic Technology |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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