Correlation Between Ping An and Harbin Air
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By analyzing existing cross correlation between Ping An Insurance and Harbin Air Conditioning, you can compare the effects of market volatilities on Ping An and Harbin Air 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 Harbin Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Harbin Air.
Diversification Opportunities for Ping An and Harbin Air
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ping and Harbin is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Harbin Air Conditioning in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbin Air Conditioning 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 Harbin Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbin Air Conditioning has no effect on the direction of Ping An i.e., Ping An and Harbin Air go up and down completely randomly.
Pair Corralation between Ping An and Harbin Air
Assuming the 90 days trading horizon Ping An Insurance is expected to under-perform the Harbin Air. But the stock apears to be less risky and, when comparing its historical volatility, Ping An Insurance is 1.46 times less risky than Harbin Air. The stock trades about -0.08 of its potential returns per unit of risk. The Harbin Air Conditioning is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 482.00 in Harbin Air Conditioning on September 14, 2024 and sell it today you would earn a total of 56.00 from holding Harbin Air Conditioning or generate 11.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Harbin Air Conditioning
Performance |
| Timeline |
| Ping An Insurance |
| Harbin Air Conditioning |
Ping An and Harbin Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Harbin Air
The main advantage of trading using opposite Ping An and Harbin Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Harbin Air 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 Harbin Air will offset losses from the drop in Harbin Air's long position.| Ping An vs. BYD Co Ltd | Ping An vs. China Mobile Limited | Ping An vs. Agricultural Bank of | Ping An vs. Industrial and Commercial |
| Harbin Air vs. PetroChina Co Ltd | Harbin Air vs. China Mobile Limited | Harbin Air vs. CNOOC Limited | Harbin Air vs. Ping An Insurance |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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