Correlation Between Ping An and China Petroleum
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By analyzing existing cross correlation between Ping An Insurance and China Petroleum Chemical, you can compare the effects of market volatilities on Ping An and China Petroleum 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 Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and China Petroleum.
Diversification Opportunities for Ping An and China Petroleum
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ping and China is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and China Petroleum Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Petroleum Chemical 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 Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Petroleum Chemical has no effect on the direction of Ping An i.e., Ping An and China Petroleum go up and down completely randomly.
Pair Corralation between Ping An and China Petroleum
Assuming the 90 days trading horizon Ping An is expected to generate 2.89 times less return on investment than China Petroleum. In addition to that, Ping An is 1.08 times more volatile than China Petroleum Chemical. It trades about 0.02 of its total potential returns per unit of risk. China Petroleum Chemical is currently generating about 0.05 per unit of volatility. If you would invest 435.00 in China Petroleum Chemical on November 2, 2024 and sell it today you would earn a total of 173.00 from holding China Petroleum Chemical or generate 39.77% 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 Petroleum Chemical
Performance |
| Timeline |
| Ping An Insurance |
| China Petroleum Chemical |
Ping An and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and China Petroleum
The main advantage of trading using opposite Ping An and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, China Petroleum 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 Petroleum will offset losses from the drop in China Petroleum'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 Petroleum vs. Tongxing Environmental Protection | China Petroleum vs. Linewell Software Co | China Petroleum vs. Montage Technology Co | China Petroleum vs. Linktel Technologies Co |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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