Correlation Between Ping An and Mingchen Health
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By analyzing existing cross correlation between Ping An Insurance and Mingchen Health Co, you can compare the effects of market volatilities on Ping An and Mingchen Health 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 Mingchen Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Mingchen Health.
Diversification Opportunities for Ping An and Mingchen Health
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ping and Mingchen is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Mingchen Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mingchen Health 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 Mingchen Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mingchen Health has no effect on the direction of Ping An i.e., Ping An and Mingchen Health go up and down completely randomly.
Pair Corralation between Ping An and Mingchen Health
Assuming the 90 days trading horizon Ping An Insurance is expected to under-perform the Mingchen Health. But the stock apears to be less risky and, when comparing its historical volatility, Ping An Insurance is 1.31 times less risky than Mingchen Health. The stock trades about -0.1 of its potential returns per unit of risk. The Mingchen Health Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,488 in Mingchen Health Co on September 1, 2024 and sell it today you would earn a total of 55.00 from holding Mingchen Health Co or generate 3.7% 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. Mingchen Health Co
Performance |
| Timeline |
| Ping An Insurance |
| Mingchen Health |
Ping An and Mingchen Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Mingchen Health
The main advantage of trading using opposite Ping An and Mingchen Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Mingchen Health 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 Mingchen Health will offset losses from the drop in Mingchen Health's long position.| Ping An vs. Industrial and Commercial | Ping An vs. China Construction Bank | Ping An vs. Bank of China | Ping An vs. Agricultural Bank of |
| Mingchen Health vs. Industrial and Commercial | Mingchen Health vs. Kweichow Moutai Co | Mingchen Health vs. Agricultural Bank of | Mingchen Health vs. China Mobile Limited |
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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