Correlation Between Ping An and Zhejiang Tailin
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By analyzing existing cross correlation between Ping An Insurance and Zhejiang Tailin Bioengineering, you can compare the effects of market volatilities on Ping An and Zhejiang Tailin 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 Zhejiang Tailin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Zhejiang Tailin.
Diversification Opportunities for Ping An and Zhejiang Tailin
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ping and Zhejiang is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Zhejiang Tailin Bioengineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Tailin Bioe 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 Zhejiang Tailin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Tailin Bioe has no effect on the direction of Ping An i.e., Ping An and Zhejiang Tailin go up and down completely randomly.
Pair Corralation between Ping An and Zhejiang Tailin
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 0.43 times more return on investment than Zhejiang Tailin. However, Ping An Insurance is 2.34 times less risky than Zhejiang Tailin. It trades about -0.37 of its potential returns per unit of risk. Zhejiang Tailin Bioengineering is currently generating about -0.21 per unit of risk. If you would invest 5,312 in Ping An Insurance on October 17, 2024 and sell it today you would lose (453.00) from holding Ping An Insurance or give up 8.53% 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. Zhejiang Tailin Bioengineering
Performance |
| Timeline |
| Ping An Insurance |
| Zhejiang Tailin Bioe |
Ping An and Zhejiang Tailin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Zhejiang Tailin
The main advantage of trading using opposite Ping An and Zhejiang Tailin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Zhejiang Tailin 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 Zhejiang Tailin will offset losses from the drop in Zhejiang Tailin's long position.| Ping An vs. Huayi Brothers Media | Ping An vs. Shanghai Yanpu Metal | Ping An vs. Zhengzhou Coal Mining | Ping An vs. Hengdian Entertainment Co |
| Zhejiang Tailin vs. Gifore Agricultural Machinery | Zhejiang Tailin vs. Masterwork Machinery | Zhejiang Tailin vs. Jonjee Hi tech Industrial | Zhejiang Tailin vs. Sichuan Yahua Industrial |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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