Correlation Between Ping An and Poly Real
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By analyzing existing cross correlation between Ping An Insurance and Poly Real Estate, you can compare the effects of market volatilities on Ping An and Poly Real 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 Poly Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Poly Real.
Diversification Opportunities for Ping An and Poly Real
Very poor diversification
The 3 months correlation between Ping and Poly is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Poly Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poly Real Estate 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 Poly Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poly Real Estate has no effect on the direction of Ping An i.e., Ping An and Poly Real go up and down completely randomly.
Pair Corralation between Ping An and Poly Real
Assuming the 90 days trading horizon Ping An is expected to generate 1.23 times less return on investment than Poly Real. But when comparing it to its historical volatility, Ping An Insurance is 1.16 times less risky than Poly Real. It trades about 0.13 of its potential returns per unit of risk. Poly Real Estate is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 785.00 in Poly Real Estate on August 31, 2024 and sell it today you would earn a total of 218.00 from holding Poly Real Estate or generate 27.77% 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. Poly Real Estate
Performance |
| Timeline |
| Ping An Insurance |
| Poly Real Estate |
Ping An and Poly Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Poly Real
The main advantage of trading using opposite Ping An and Poly Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Poly Real 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 Poly Real will offset losses from the drop in Poly Real's long position.| Ping An vs. Agricultural Bank of | Ping An vs. Hangzhou Pinming Software | Ping An vs. Shandong Mining Machinery | Ping An vs. GuoChuang Software Co |
| Poly Real vs. Guangdong Jingyi Metal | Poly Real vs. Heilongjiang Transport Development | Poly Real vs. Silkroad Visual Technology | Poly Real vs. Chongqing Shunbo Aluminum |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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