Correlation Between Ping An and Dirui Industrial
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By analyzing existing cross correlation between Ping An Insurance and Dirui Industrial Co, you can compare the effects of market volatilities on Ping An and Dirui Industrial 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 Dirui Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Dirui Industrial.
Diversification Opportunities for Ping An and Dirui Industrial
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ping and Dirui is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Dirui Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dirui Industrial 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 Dirui Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dirui Industrial has no effect on the direction of Ping An i.e., Ping An and Dirui Industrial go up and down completely randomly.
Pair Corralation between Ping An and Dirui Industrial
Assuming the 90 days trading horizon Ping An Insurance is expected to under-perform the Dirui Industrial. But the stock apears to be less risky and, when comparing its historical volatility, Ping An Insurance is 1.23 times less risky than Dirui Industrial. The stock trades about -0.17 of its potential returns per unit of risk. The Dirui Industrial Co is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 1,662 in Dirui Industrial Co on August 26, 2024 and sell it today you would lose (99.00) from holding Dirui Industrial Co or give up 5.96% 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. Dirui Industrial Co
Performance |
| Timeline |
| Ping An Insurance |
| Dirui Industrial |
Ping An and Dirui Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Dirui Industrial
The main advantage of trading using opposite Ping An and Dirui Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Dirui Industrial 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 Dirui Industrial will offset losses from the drop in Dirui Industrial's long position.| Ping An vs. Ming Yang Smart | Ping An vs. 159681 | Ping An vs. 159005 | Ping An vs. Loctek Ergonomic Technology |
| Dirui Industrial vs. Bank of China | Dirui Industrial vs. Kweichow Moutai Co | Dirui Industrial vs. PetroChina Co Ltd | Dirui Industrial vs. Bank of Communications |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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