Correlation Between Ping An and Zhuzhou Feilu
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By analyzing existing cross correlation between Ping An Insurance and Zhuzhou Feilu High Tech, you can compare the effects of market volatilities on Ping An and Zhuzhou Feilu 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 Zhuzhou Feilu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Zhuzhou Feilu.
Diversification Opportunities for Ping An and Zhuzhou Feilu
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ping and Zhuzhou is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Zhuzhou Feilu High Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhuzhou Feilu High 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 Zhuzhou Feilu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhuzhou Feilu High has no effect on the direction of Ping An i.e., Ping An and Zhuzhou Feilu go up and down completely randomly.
Pair Corralation between Ping An and Zhuzhou Feilu
Assuming the 90 days trading horizon Ping An Insurance is expected to under-perform the Zhuzhou Feilu. But the stock apears to be less risky and, when comparing its historical volatility, Ping An Insurance is 1.37 times less risky than Zhuzhou Feilu. The stock trades about -0.18 of its potential returns per unit of risk. The Zhuzhou Feilu High Tech is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 683.00 in Zhuzhou Feilu High Tech on August 28, 2024 and sell it today you would earn a total of 2.00 from holding Zhuzhou Feilu High Tech or generate 0.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Zhuzhou Feilu High Tech
Performance |
| Timeline |
| Ping An Insurance |
| Zhuzhou Feilu High |
Ping An and Zhuzhou Feilu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Zhuzhou Feilu
The main advantage of trading using opposite Ping An and Zhuzhou Feilu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Zhuzhou Feilu 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 Zhuzhou Feilu will offset losses from the drop in Zhuzhou Feilu's long position.| Ping An vs. Ming Yang Smart | Ping An vs. 159681 | Ping An vs. 159005 | Ping An vs. Loctek Ergonomic Technology |
| Zhuzhou Feilu vs. Zijin Mining Group | Zhuzhou Feilu vs. Baoshan Iron Steel | Zhuzhou Feilu vs. Shandong Gold Mining | Zhuzhou Feilu 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 Stocks Directory module to find actively traded stocks across global markets.
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