Correlation Between Ping An and Jilin Jlu
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By analyzing existing cross correlation between Ping An Insurance and Jilin Jlu Communication, you can compare the effects of market volatilities on Ping An and Jilin Jlu 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 Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Jilin Jlu.
Diversification Opportunities for Ping An and Jilin Jlu
Almost no diversification
The 3 months correlation between Ping and Jilin is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Jilin Jlu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jilin Jlu Communication 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 Jilin Jlu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jilin Jlu Communication has no effect on the direction of Ping An i.e., Ping An and Jilin Jlu go up and down completely randomly.
Pair Corralation between Ping An and Jilin Jlu
Assuming the 90 days trading horizon Ping An is expected to generate 1.47 times less return on investment than Jilin Jlu. But when comparing it to its historical volatility, Ping An Insurance is 1.4 times less risky than Jilin Jlu. It trades about 0.13 of its potential returns per unit of risk. Jilin Jlu Communication is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 696.00 in Jilin Jlu Communication on August 28, 2024 and sell it today you would earn a total of 220.00 from holding Jilin Jlu Communication or generate 31.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Jilin Jlu Communication
Performance |
| Timeline |
| Ping An Insurance |
| Jilin Jlu Communication |
Ping An and Jilin Jlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Jilin Jlu
The main advantage of trading using opposite Ping An and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Jilin Jlu 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 Jilin Jlu will offset losses from the drop in Jilin Jlu's long position.| Ping An vs. Ming Yang Smart | Ping An vs. 159681 | Ping An vs. 159005 | Ping An vs. Loctek Ergonomic Technology |
| Jilin Jlu vs. Ming Yang Smart | Jilin Jlu vs. 159681 | Jilin Jlu vs. 159005 | Jilin Jlu vs. Loctek Ergonomic 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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