Correlation Between Ping An and Lepu Medical
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By analyzing existing cross correlation between Ping An Insurance and Lepu Medical Tech, you can compare the effects of market volatilities on Ping An and Lepu 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 Lepu Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Lepu Medical.
Diversification Opportunities for Ping An and Lepu Medical
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ping and Lepu is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Lepu Medical Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lepu Medical Tech 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 Lepu Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lepu Medical Tech has no effect on the direction of Ping An i.e., Ping An and Lepu Medical go up and down completely randomly.
Pair Corralation between Ping An and Lepu Medical
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 0.68 times more return on investment than Lepu Medical. However, Ping An Insurance is 1.46 times less risky than Lepu Medical. It trades about -0.37 of its potential returns per unit of risk. Lepu Medical Tech is currently generating about -0.26 per unit of risk. If you would invest 5,312 in Ping An Insurance on October 17, 2024 and sell it today you would lose (453.00) from holding Ping An Insurance or give up 8.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ping An Insurance vs. Lepu Medical Tech
Performance |
| Timeline |
| Ping An Insurance |
| Lepu Medical Tech |
Ping An and Lepu Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Lepu Medical
The main advantage of trading using opposite Ping An and Lepu Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Lepu 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 Lepu Medical will offset losses from the drop in Lepu Medical's long position.| Ping An vs. Huayi Brothers Media | Ping An vs. Shanghai Yanpu Metal | Ping An vs. Zhengzhou Coal Mining | Ping An vs. Hengdian Entertainment Co |
| Lepu Medical vs. Wuhan Yangtze Communication | Lepu Medical vs. Dosilicon Co | Lepu Medical vs. Jinsanjiang Silicon Material | Lepu Medical vs. Zhejiang JIULI Hi tech |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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