Correlation Between Ping An and Changsha Jingjia
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By analyzing existing cross correlation between Ping An Insurance and Changsha Jingjia Microelectronics, you can compare the effects of market volatilities on Ping An and Changsha Jingjia 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 Changsha Jingjia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Changsha Jingjia.
Diversification Opportunities for Ping An and Changsha Jingjia
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ping and Changsha is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Changsha Jingjia Microelectron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changsha Jingjia Mic 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 Changsha Jingjia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changsha Jingjia Mic has no effect on the direction of Ping An i.e., Ping An and Changsha Jingjia go up and down completely randomly.
Pair Corralation between Ping An and Changsha Jingjia
Assuming the 90 days trading horizon Ping An is expected to generate 14.08 times less return on investment than Changsha Jingjia. But when comparing it to its historical volatility, Ping An Insurance is 2.32 times less risky than Changsha Jingjia. It trades about 0.01 of its potential returns per unit of risk. Changsha Jingjia Microelectronics is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 6,045 in Changsha Jingjia Microelectronics on October 15, 2024 and sell it today you would earn a total of 2,885 from holding Changsha Jingjia Microelectronics or generate 47.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Changsha Jingjia Microelectron
Performance |
| Timeline |
| Ping An Insurance |
| Changsha Jingjia Mic |
Ping An and Changsha Jingjia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Changsha Jingjia
The main advantage of trading using opposite Ping An and Changsha Jingjia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Changsha Jingjia 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 Changsha Jingjia will offset losses from the drop in Changsha Jingjia's long position.| Ping An vs. Sinofibers Technology Co | Ping An vs. Montage Technology Co | Ping An vs. HUAQIN TECHNOLOGY LTD | Ping An vs. GreenTech Environmental Co |
| Changsha Jingjia vs. Sunwave Communications Co | Changsha Jingjia vs. Aba Chemicals Corp | Changsha Jingjia vs. Songz Automobile Air | Changsha Jingjia vs. Beijing Kingsoft Office |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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