Correlation Between Ping An and China Minsheng
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By analyzing existing cross correlation between Ping An Insurance and China Minsheng Banking, you can compare the effects of market volatilities on Ping An and China Minsheng 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 China Minsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and China Minsheng.
Diversification Opportunities for Ping An and China Minsheng
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ping and China is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and China Minsheng Banking in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Minsheng Banking 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 China Minsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Minsheng Banking has no effect on the direction of Ping An i.e., Ping An and China Minsheng go up and down completely randomly.
Pair Corralation between Ping An and China Minsheng
Assuming the 90 days trading horizon Ping An is expected to generate 2.11 times less return on investment than China Minsheng. In addition to that, Ping An is 1.31 times more volatile than China Minsheng Banking. It trades about 0.02 of its total potential returns per unit of risk. China Minsheng Banking is currently generating about 0.04 per unit of volatility. If you would invest 324.00 in China Minsheng Banking on November 2, 2024 and sell it today you would earn a total of 91.00 from holding China Minsheng Banking or generate 28.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. China Minsheng Banking
Performance |
| Timeline |
| Ping An Insurance |
| China Minsheng Banking |
Ping An and China Minsheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and China Minsheng
The main advantage of trading using opposite Ping An and China Minsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, China Minsheng 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 China Minsheng will offset losses from the drop in China Minsheng's long position.| Ping An vs. Zijin Mining Group | Ping An vs. Jinhui Mining Co | Ping An vs. Huaibei Mining Holdings | Ping An vs. JCHX Mining Management |
| China Minsheng vs. Soyea Technology Co | China Minsheng vs. Shandong Polymer Biochemicals | China Minsheng vs. Hubei Xingfa Chemicals | China Minsheng vs. Hubei Forbon 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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