Correlation Between Ping An and Beijing Lanxum
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By analyzing existing cross correlation between Ping An Insurance and Beijing Lanxum Tech, you can compare the effects of market volatilities on Ping An and Beijing Lanxum 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 Beijing Lanxum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Beijing Lanxum.
Diversification Opportunities for Ping An and Beijing Lanxum
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ping and Beijing is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Beijing Lanxum Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Lanxum 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 Beijing Lanxum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Lanxum Tech has no effect on the direction of Ping An i.e., Ping An and Beijing Lanxum go up and down completely randomly.
Pair Corralation between Ping An and Beijing Lanxum
Assuming the 90 days trading horizon Ping An Insurance is expected to under-perform the Beijing Lanxum. But the stock apears to be less risky and, when comparing its historical volatility, Ping An Insurance is 4.16 times less risky than Beijing Lanxum. The stock trades about -0.11 of its potential returns per unit of risk. The Beijing Lanxum Tech is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,080 in Beijing Lanxum Tech on September 4, 2024 and sell it today you would lose (59.00) from holding Beijing Lanxum Tech or give up 5.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Beijing Lanxum Tech
Performance |
| Timeline |
| Ping An Insurance |
| Beijing Lanxum Tech |
Ping An and Beijing Lanxum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Beijing Lanxum
The main advantage of trading using opposite Ping An and Beijing Lanxum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Beijing Lanxum 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 Beijing Lanxum will offset losses from the drop in Beijing Lanxum's long position.| Ping An vs. Dazhong Transportation Group | Ping An vs. Hainan Haiqi Transportation | Ping An vs. Lander Sports Development | Ping An vs. Hengdian Entertainment Co |
| Beijing Lanxum vs. Ciwen Media Co | Beijing Lanxum vs. Lander Sports Development | Beijing Lanxum vs. JiShi Media Co | Beijing Lanxum vs. Dalian Zeus Entertainment |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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