Correlation Between Ping An and Qingdao Rural
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By analyzing existing cross correlation between Ping An Insurance and Qingdao Rural Commercial, you can compare the effects of market volatilities on Ping An and Qingdao Rural 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 Qingdao Rural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Qingdao Rural.
Diversification Opportunities for Ping An and Qingdao Rural
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ping and Qingdao is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Qingdao Rural Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Rural Commercial 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 Qingdao Rural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Rural Commercial has no effect on the direction of Ping An i.e., Ping An and Qingdao Rural go up and down completely randomly.
Pair Corralation between Ping An and Qingdao Rural
Assuming the 90 days trading horizon Ping An Insurance is expected to under-perform the Qingdao Rural. But the stock apears to be less risky and, when comparing its historical volatility, Ping An Insurance is 1.25 times less risky than Qingdao Rural. The stock trades about -0.25 of its potential returns per unit of risk. The Qingdao Rural Commercial is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 302.00 in Qingdao Rural Commercial on October 22, 2024 and sell it today you would lose (7.00) from holding Qingdao Rural Commercial or give up 2.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Qingdao Rural Commercial
Performance |
| Timeline |
| Ping An Insurance |
| Qingdao Rural Commercial |
Ping An and Qingdao Rural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Qingdao Rural
The main advantage of trading using opposite Ping An and Qingdao Rural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Qingdao Rural 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 Qingdao Rural will offset losses from the drop in Qingdao Rural's long position.| Ping An vs. Harbin Air Conditioning | Ping An vs. Western Mining Co | Ping An vs. Jointo Energy Investment | Ping An vs. Hainan Mining Co |
| Qingdao Rural vs. Nanjing Canatal Data | Qingdao Rural vs. Longxing Chemical Stock | Qingdao Rural vs. Ping An Insurance | Qingdao Rural vs. China Life Insurance |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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