Correlation Between Ping An and Lecron Energy
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By analyzing existing cross correlation between Ping An Insurance and Lecron Energy Saving, you can compare the effects of market volatilities on Ping An and Lecron Energy 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 Lecron Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Lecron Energy.
Diversification Opportunities for Ping An and Lecron Energy
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ping and Lecron is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Lecron Energy Saving in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lecron Energy Saving 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 Lecron Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lecron Energy Saving has no effect on the direction of Ping An i.e., Ping An and Lecron Energy go up and down completely randomly.
Pair Corralation between Ping An and Lecron Energy
Assuming the 90 days trading horizon Ping An Insurance is expected to under-perform the Lecron Energy. But the stock apears to be less risky and, when comparing its historical volatility, Ping An Insurance is 2.71 times less risky than Lecron Energy. The stock trades about -0.15 of its potential returns per unit of risk. The Lecron Energy Saving is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 607.00 in Lecron Energy Saving on October 25, 2024 and sell it today you would lose (32.00) from holding Lecron Energy Saving or give up 5.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Lecron Energy Saving
Performance |
| Timeline |
| Ping An Insurance |
| Lecron Energy Saving |
Ping An and Lecron Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Lecron Energy
The main advantage of trading using opposite Ping An and Lecron Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Lecron Energy 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 Lecron Energy will offset losses from the drop in Lecron Energy's long position.| Ping An vs. JCHX Mining Management | Ping An vs. Zoje Resources Investment | Ping An vs. Huaxia Fund Management | Ping An vs. Sportsoul Co Ltd |
| Lecron Energy vs. Changchun Engley Automobile | Lecron Energy vs. Eyebright Medical Technology | Lecron Energy vs. Touchstone International Medical | Lecron Energy vs. Allgens Medical Technology |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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