Correlation Between Ping An and Bank of Suzhou
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By analyzing existing cross correlation between Ping An Insurance and Bank of Suzhou, you can compare the effects of market volatilities on Ping An and Bank of Suzhou 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 Bank of Suzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Bank of Suzhou.
Diversification Opportunities for Ping An and Bank of Suzhou
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ping and Bank is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Bank of Suzhou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Suzhou 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 Bank of Suzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Suzhou has no effect on the direction of Ping An i.e., Ping An and Bank of Suzhou go up and down completely randomly.
Pair Corralation between Ping An and Bank of Suzhou
Assuming the 90 days trading horizon Ping An Insurance is expected to under-perform the Bank of Suzhou. In addition to that, Ping An is 1.65 times more volatile than Bank of Suzhou. It trades about -0.1 of its total potential returns per unit of risk. Bank of Suzhou is currently generating about 0.23 per unit of volatility. If you would invest 744.00 in Bank of Suzhou on September 1, 2024 and sell it today you would earn a total of 48.00 from holding Bank of Suzhou or generate 6.45% 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. Bank of Suzhou
Performance |
| Timeline |
| Ping An Insurance |
| Bank of Suzhou |
Ping An and Bank of Suzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Bank of Suzhou
The main advantage of trading using opposite Ping An and Bank of Suzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Bank of Suzhou 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 Bank of Suzhou will offset losses from the drop in Bank of Suzhou'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 |
| Bank of Suzhou vs. Cultural Investment Holdings | Bank of Suzhou vs. Bus Online Co | Bank of Suzhou vs. Holitech Technology Co | Bank of Suzhou vs. Zotye Automobile 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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