Correlation Between Ping An and Elite Color
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By analyzing existing cross correlation between Ping An Insurance and Elite Color Environmental, you can compare the effects of market volatilities on Ping An and Elite Color 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 Elite Color. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Elite Color.
Diversification Opportunities for Ping An and Elite Color
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ping and Elite is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Elite Color Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elite Color Environmental 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 Elite Color. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elite Color Environmental has no effect on the direction of Ping An i.e., Ping An and Elite Color go up and down completely randomly.
Pair Corralation between Ping An and Elite Color
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 0.68 times more return on investment than Elite Color. However, Ping An Insurance is 1.48 times less risky than Elite Color. It trades about 0.03 of its potential returns per unit of risk. Elite Color Environmental is currently generating about 0.0 per unit of risk. If you would invest 4,807 in Ping An Insurance on August 29, 2024 and sell it today you would earn a total of 548.00 from holding Ping An Insurance or generate 11.4% 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. Elite Color Environmental
Performance |
| Timeline |
| Ping An Insurance |
| Elite Color Environmental |
Ping An and Elite Color Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Elite Color
The main advantage of trading using opposite Ping An and Elite Color positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Elite Color 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 Elite Color will offset losses from the drop in Elite Color's long position.| Ping An vs. Kweichow Moutai Co | Ping An vs. Contemporary Amperex Technology | Ping An vs. G bits Network Technology | Ping An vs. BYD Co Ltd |
| Elite Color vs. Shandong Gold Mining | Elite Color vs. Rongsheng Petrochemical Co | Elite Color vs. Inner Mongolia BaoTou | Elite Color vs. Jiangxi Ganfeng Lithium |
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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