Correlation Between Ping An and Shandong Longda
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By analyzing existing cross correlation between Ping An Insurance and Shandong Longda Meat, you can compare the effects of market volatilities on Ping An and Shandong Longda 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 Shandong Longda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Shandong Longda.
Diversification Opportunities for Ping An and Shandong Longda
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ping and Shandong is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Shandong Longda Meat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Longda Meat 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 Shandong Longda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Longda Meat has no effect on the direction of Ping An i.e., Ping An and Shandong Longda go up and down completely randomly.
Pair Corralation between Ping An and Shandong Longda
Assuming the 90 days trading horizon Ping An Insurance is expected to under-perform the Shandong Longda. But the stock apears to be less risky and, when comparing its historical volatility, Ping An Insurance is 1.8 times less risky than Shandong Longda. The stock trades about -0.38 of its potential returns per unit of risk. The Shandong Longda Meat is currently generating about -0.19 of returns per unit of risk over similar time horizon. If you would invest 756.00 in Shandong Longda Meat on October 11, 2024 and sell it today you would lose (76.00) from holding Shandong Longda Meat or give up 10.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Shandong Longda Meat
Performance |
| Timeline |
| Ping An Insurance |
| Shandong Longda Meat |
Ping An and Shandong Longda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Shandong Longda
The main advantage of trading using opposite Ping An and Shandong Longda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Shandong Longda 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 Shandong Longda will offset losses from the drop in Shandong Longda's long position.| Ping An vs. Unisplendour Corp | Ping An vs. Konfoong Materials International | Ping An vs. Zhejiang JIULI Hi tech | Ping An vs. China Building Material |
| Shandong Longda vs. Tongling Nonferrous Metals | Shandong Longda vs. Ping An Insurance | Shandong Longda vs. Postal Savings Bank | Shandong Longda vs. Peoples Insurance of |
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 CEOs Directory module to screen CEOs from public companies around the world.
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