Correlation Between Ping An and Jiangxi Naipu
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By analyzing existing cross correlation between Ping An Insurance and Jiangxi Naipu Mining, you can compare the effects of market volatilities on Ping An and Jiangxi Naipu 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 Jiangxi Naipu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Jiangxi Naipu.
Diversification Opportunities for Ping An and Jiangxi Naipu
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ping and Jiangxi is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Jiangxi Naipu Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Naipu Mining 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 Jiangxi Naipu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Naipu Mining has no effect on the direction of Ping An i.e., Ping An and Jiangxi Naipu go up and down completely randomly.
Pair Corralation between Ping An and Jiangxi Naipu
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 0.47 times more return on investment than Jiangxi Naipu. However, Ping An Insurance is 2.12 times less risky than Jiangxi Naipu. It trades about 0.07 of its potential returns per unit of risk. Jiangxi Naipu Mining is currently generating about -0.27 per unit of risk. If you would invest 4,972 in Ping An Insurance on December 3, 2024 and sell it today you would earn a total of 66.00 from holding Ping An Insurance or generate 1.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Jiangxi Naipu Mining
Performance |
| Timeline |
| Ping An Insurance |
| Jiangxi Naipu Mining |
Ping An and Jiangxi Naipu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Jiangxi Naipu
The main advantage of trading using opposite Ping An and Jiangxi Naipu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Jiangxi Naipu 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 Jiangxi Naipu will offset losses from the drop in Jiangxi Naipu's long position.| Ping An vs. Eyebright Medical Technology | Ping An vs. Hangzhou Minsheng Healthcare | Ping An vs. Linewell Software Co | Ping An vs. Youngy Health Co |
| Jiangxi Naipu vs. Zoje Resources Investment | Jiangxi Naipu vs. Jiangsu Yanghe Brewery | Jiangxi Naipu vs. Zhejiang Construction Investment | Jiangxi Naipu vs. Chengdu Spaceon Electronics |
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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