Correlation Between Ping An and Chinese Universe
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By analyzing existing cross correlation between Ping An Insurance and Chinese Universe Publishing, you can compare the effects of market volatilities on Ping An and Chinese Universe 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 Chinese Universe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Chinese Universe.
Diversification Opportunities for Ping An and Chinese Universe
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ping and Chinese is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Chinese Universe Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chinese Universe Pub 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 Chinese Universe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chinese Universe Pub has no effect on the direction of Ping An i.e., Ping An and Chinese Universe go up and down completely randomly.
Pair Corralation between Ping An and Chinese Universe
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 0.75 times more return on investment than Chinese Universe. However, Ping An Insurance is 1.33 times less risky than Chinese Universe. It trades about -0.29 of its potential returns per unit of risk. Chinese Universe Publishing is currently generating about -0.38 per unit of risk. If you would invest 5,301 in Ping An Insurance on October 18, 2024 and sell it today you would lose (390.00) from holding Ping An Insurance or give up 7.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Chinese Universe Publishing
Performance |
| Timeline |
| Ping An Insurance |
| Chinese Universe Pub |
Ping An and Chinese Universe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Chinese Universe
The main advantage of trading using opposite Ping An and Chinese Universe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Chinese Universe 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 Chinese Universe will offset losses from the drop in Chinese Universe's long position.| Ping An vs. Huayi Brothers Media | Ping An vs. Shanghai Yanpu Metal | Ping An vs. Zhengzhou Coal Mining | Ping An vs. Hengdian Entertainment Co |
| Chinese Universe vs. TianJin 712 Communication | Chinese Universe vs. Bank of Communications | Chinese Universe vs. Guangdong Shenglu Telecommunication | Chinese Universe vs. Zhongyin Babi Food |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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