Correlation Between Ping An and Iat Automobile
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By analyzing existing cross correlation between Ping An Insurance and Iat Automobile Technology, you can compare the effects of market volatilities on Ping An and Iat Automobile 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 Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Iat Automobile.
Diversification Opportunities for Ping An and Iat Automobile
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ping and Iat is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Iat Automobile Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iat Automobile 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 Iat Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iat Automobile Technology has no effect on the direction of Ping An i.e., Ping An and Iat Automobile go up and down completely randomly.
Pair Corralation between Ping An and Iat Automobile
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 0.44 times more return on investment than Iat Automobile. However, Ping An Insurance is 2.26 times less risky than Iat Automobile. It trades about 0.03 of its potential returns per unit of risk. Iat Automobile Technology is currently generating about -0.01 per unit of risk. If you would invest 4,807 in Ping An Insurance on August 25, 2024 and sell it today you would earn a total of 496.00 from holding Ping An Insurance or generate 10.32% 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. Iat Automobile Technology
Performance |
| Timeline |
| Ping An Insurance |
| Iat Automobile Technology |
Ping An and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Iat Automobile
The main advantage of trading using opposite Ping An and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Iat Automobile 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 Iat Automobile will offset losses from the drop in Iat Automobile's long position.| Ping An vs. Beijing Wandong Medical | Ping An vs. Hainan Mining Co | Ping An vs. Guangzhou Haozhi Industrial | Ping An vs. Allmed Medical Products |
| Iat Automobile vs. Kweichow Moutai Co | Iat Automobile vs. Contemporary Amperex Technology | Iat Automobile vs. G bits Network Technology | Iat Automobile vs. Beijing Roborock 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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