Correlation Between Ping An and Boai NKY
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By analyzing existing cross correlation between Ping An Insurance and Boai NKY Pharmaceuticals, you can compare the effects of market volatilities on Ping An and Boai NKY 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 Boai NKY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Boai NKY.
Diversification Opportunities for Ping An and Boai NKY
Poor diversification
The 3 months correlation between Ping and Boai is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Boai NKY Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boai NKY Pharmaceuticals 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 Boai NKY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boai NKY Pharmaceuticals has no effect on the direction of Ping An i.e., Ping An and Boai NKY go up and down completely randomly.
Pair Corralation between Ping An and Boai NKY
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 0.49 times more return on investment than Boai NKY. However, Ping An Insurance is 2.02 times less risky than Boai NKY. It trades about 0.08 of its potential returns per unit of risk. Boai NKY Pharmaceuticals is currently generating about 0.0 per unit of risk. If you would invest 3,960 in Ping An Insurance on September 4, 2024 and sell it today you would earn a total of 1,483 from holding Ping An Insurance or generate 37.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Boai NKY Pharmaceuticals
Performance |
| Timeline |
| Ping An Insurance |
| Boai NKY Pharmaceuticals |
Ping An and Boai NKY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Boai NKY
The main advantage of trading using opposite Ping An and Boai NKY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Boai NKY 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 Boai NKY will offset losses from the drop in Boai NKY'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 |
| Boai NKY vs. Zijin Mining Group | Boai NKY vs. Wanhua Chemical Group | Boai NKY vs. Baoshan Iron Steel | Boai NKY vs. Rongsheng Petrochemical 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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