Correlation Between Ping An and Xinjiang Communications
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By analyzing existing cross correlation between Ping An Insurance and Xinjiang Communications Construction, you can compare the effects of market volatilities on Ping An and Xinjiang Communications 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 Xinjiang Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Xinjiang Communications.
Diversification Opportunities for Ping An and Xinjiang Communications
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ping and Xinjiang is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Xinjiang Communications Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Communications 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 Xinjiang Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Communications has no effect on the direction of Ping An i.e., Ping An and Xinjiang Communications go up and down completely randomly.
Pair Corralation between Ping An and Xinjiang Communications
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 0.79 times more return on investment than Xinjiang Communications. However, Ping An Insurance is 1.27 times less risky than Xinjiang Communications. It trades about -0.19 of its potential returns per unit of risk. Xinjiang Communications Construction is currently generating about -0.18 per unit of risk. If you would invest 5,390 in Ping An Insurance on October 31, 2024 and sell it today you would lose (305.00) from holding Ping An Insurance or give up 5.66% 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. Xinjiang Communications Constr
Performance |
| Timeline |
| Ping An Insurance |
| Xinjiang Communications |
Ping An and Xinjiang Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Xinjiang Communications
The main advantage of trading using opposite Ping An and Xinjiang Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Xinjiang Communications 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 Xinjiang Communications will offset losses from the drop in Xinjiang Communications' long position.| Ping An vs. Dongguan Tarry Electronics | Ping An vs. Sihui Fuji Electronics | Ping An vs. Jiangyin Jianghua Microelectronics | Ping An vs. Shenzhen Centralcon Investment |
| Xinjiang Communications vs. Anji Foodstuff Co | Xinjiang Communications vs. Ping An Insurance | Xinjiang Communications vs. Fujian Anjoy Foods | Xinjiang Communications vs. JuneYao Dairy Co |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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