Correlation Between Ping An and Allmed Medical
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By analyzing existing cross correlation between Ping An Insurance and Allmed Medical Products, you can compare the effects of market volatilities on Ping An and Allmed Medical 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 Allmed Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Allmed Medical.
Diversification Opportunities for Ping An and Allmed Medical
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ping and Allmed is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Allmed Medical Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allmed Medical Products 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 Allmed Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allmed Medical Products has no effect on the direction of Ping An i.e., Ping An and Allmed Medical go up and down completely randomly.
Pair Corralation between Ping An and Allmed Medical
Assuming the 90 days trading horizon Ping An Insurance is expected to under-perform the Allmed Medical. But the stock apears to be less risky and, when comparing its historical volatility, Ping An Insurance is 1.48 times less risky than Allmed Medical. The stock trades about -0.18 of its potential returns per unit of risk. The Allmed Medical Products is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 872.00 in Allmed Medical Products on August 28, 2024 and sell it today you would earn a total of 85.00 from holding Allmed Medical Products or generate 9.75% 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. Allmed Medical Products
Performance |
| Timeline |
| Ping An Insurance |
| Allmed Medical Products |
Ping An and Allmed Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Allmed Medical
The main advantage of trading using opposite Ping An and Allmed Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Allmed Medical 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 Allmed Medical will offset losses from the drop in Allmed Medical's long position.| Ping An vs. Ming Yang Smart | Ping An vs. 159681 | Ping An vs. 159005 | Ping An vs. Loctek Ergonomic Technology |
| Allmed Medical vs. Bank of China | Allmed Medical vs. Kweichow Moutai Co | Allmed Medical vs. PetroChina Co Ltd | Allmed Medical vs. Bank of Communications |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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