Correlation Between Ping An and Winner Medical Co
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By analyzing existing cross correlation between Ping An Insurance and Winner Medical Co, you can compare the effects of market volatilities on Ping An and Winner Medical Co 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 Winner Medical Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Winner Medical Co.
Diversification Opportunities for Ping An and Winner Medical Co
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ping and Winner is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Winner Medical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winner Medical Co 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 Winner Medical Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winner Medical Co has no effect on the direction of Ping An i.e., Ping An and Winner Medical Co go up and down completely randomly.
Pair Corralation between Ping An and Winner Medical Co
Assuming the 90 days trading horizon Ping An is expected to generate 1.69 times less return on investment than Winner Medical Co. But when comparing it to its historical volatility, Ping An Insurance is 1.46 times less risky than Winner Medical Co. It trades about 0.13 of its potential returns per unit of risk. Winner Medical Co is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,507 in Winner Medical Co on September 2, 2024 and sell it today you would earn a total of 990.00 from holding Winner Medical Co or generate 39.49% 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. Winner Medical Co
Performance |
| Timeline |
| Ping An Insurance |
| Winner Medical Co |
Ping An and Winner Medical Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Winner Medical Co
The main advantage of trading using opposite Ping An and Winner Medical Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Winner Medical Co 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 Winner Medical Co will offset losses from the drop in Winner Medical Co's long position.| Ping An vs. Mingchen Health Co | Ping An vs. Hangzhou Minsheng Healthcare | Ping An vs. By health | Ping An vs. Shandong Longquan Pipeline |
| Winner Medical Co vs. Nanjing Putian Telecommunications | Winner Medical Co vs. Shenzhen Hifuture Electric | Winner Medical Co vs. Tianjin Realty Development | Winner Medical Co vs. Shenyang Huitian Thermal |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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