Correlation Between Ping An and China Sports
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By analyzing existing cross correlation between Ping An Insurance and China Sports Industry, you can compare the effects of market volatilities on Ping An and China Sports 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 Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and China Sports.
Diversification Opportunities for Ping An and China Sports
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ping and China is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and China Sports Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Sports Industry 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 Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Sports Industry has no effect on the direction of Ping An i.e., Ping An and China Sports go up and down completely randomly.
Pair Corralation between Ping An and China Sports
Assuming the 90 days trading horizon Ping An is expected to generate 1.71 times less return on investment than China Sports. But when comparing it to its historical volatility, Ping An Insurance is 1.45 times less risky than China Sports. It trades about 0.06 of its potential returns per unit of risk. China Sports Industry is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 767.00 in China Sports Industry on November 5, 2024 and sell it today you would earn a total of 13.00 from holding China Sports Industry or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. China Sports Industry
Performance |
| Timeline |
| Ping An Insurance |
| China Sports Industry |
Ping An and China Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and China Sports
The main advantage of trading using opposite Ping An and China Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, China Sports 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 Sports will offset losses from the drop in China Sports' long position.| Ping An vs. Beijing Kaiwen Education | Ping An vs. Jiangsu Phoenix Publishing | Ping An vs. Yili Chuanning Biotechnology | Ping An vs. Changjiang Publishing Media |
| China Sports vs. Tjk Machinery Tianjin | China Sports vs. Zhejiang Yinlun Machinery | China Sports vs. Tongling Nonferrous Metals | China Sports vs. Guangzhou KDT Machinery |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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