Correlation Between Ping An and Weihai Honglin
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By analyzing existing cross correlation between Ping An Insurance and Weihai Honglin Electronic, you can compare the effects of market volatilities on Ping An and Weihai Honglin 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 Weihai Honglin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Weihai Honglin.
Diversification Opportunities for Ping An and Weihai Honglin
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ping and Weihai is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Weihai Honglin Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weihai Honglin Electronic 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 Weihai Honglin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weihai Honglin Electronic has no effect on the direction of Ping An i.e., Ping An and Weihai Honglin go up and down completely randomly.
Pair Corralation between Ping An and Weihai Honglin
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 1.05 times more return on investment than Weihai Honglin. However, Ping An is 1.05 times more volatile than Weihai Honglin Electronic. It trades about -0.16 of its potential returns per unit of risk. Weihai Honglin Electronic is currently generating about -0.18 per unit of risk. If you would invest 5,750 in Ping An Insurance on August 29, 2024 and sell it today you would lose (445.00) from holding Ping An Insurance or give up 7.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Weihai Honglin Electronic
Performance |
| Timeline |
| Ping An Insurance |
| Weihai Honglin Electronic |
Ping An and Weihai Honglin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Weihai Honglin
The main advantage of trading using opposite Ping An and Weihai Honglin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Weihai Honglin 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 Weihai Honglin will offset losses from the drop in Weihai Honglin's long position.| Ping An vs. Ming Yang Smart | Ping An vs. 159681 | Ping An vs. 159005 | Ping An vs. Loctek Ergonomic Technology |
| Weihai Honglin vs. Kweichow Moutai Co | Weihai Honglin vs. Shenzhen Mindray Bio Medical | Weihai Honglin vs. Jiangsu Pacific Quartz | Weihai Honglin vs. G bits Network 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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