Correlation Between Ping An and VT Industrial
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By analyzing existing cross correlation between Ping An Insurance and VT Industrial Technology, you can compare the effects of market volatilities on Ping An and VT 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 VT Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and VT Industrial.
Diversification Opportunities for Ping An and VT Industrial
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ping and 300707 is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and VT Industrial Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VT Industrial Technology 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 VT Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VT Industrial Technology has no effect on the direction of Ping An i.e., Ping An and VT Industrial go up and down completely randomly.
Pair Corralation between Ping An and VT Industrial
Assuming the 90 days trading horizon Ping An is expected to generate 1.38 times less return on investment than VT Industrial. But when comparing it to its historical volatility, Ping An Insurance is 2.15 times less risky than VT Industrial. It trades about 0.03 of its potential returns per unit of risk. VT Industrial Technology is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,578 in VT Industrial Technology on September 5, 2024 and sell it today you would earn a total of 22.00 from holding VT Industrial Technology or generate 1.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Ping An Insurance vs. VT Industrial Technology
Performance |
| Timeline |
| Ping An Insurance |
| VT Industrial Technology |
Ping An and VT Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and VT Industrial
The main advantage of trading using opposite Ping An and VT Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, VT 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 VT Industrial will offset losses from the drop in VT Industrial's long position.| Ping An vs. Southchip Semiconductor Technology | Ping An vs. Allwin Telecommunication Co | Ping An vs. Sunwave Communications Co | Ping An vs. Iat Automobile Technology |
| VT Industrial vs. Zoy Home Furnishing | VT Industrial vs. Hunan Mendale Hometextile | VT Industrial vs. UE Furniture Co | VT Industrial vs. Sinosteel Luonai Materials |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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