Correlation Between Ping An and Hubei Geoway
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By analyzing existing cross correlation between Ping An Insurance and Hubei Geoway Investment, you can compare the effects of market volatilities on Ping An and Hubei Geoway 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 Hubei Geoway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Hubei Geoway.
Diversification Opportunities for Ping An and Hubei Geoway
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ping and Hubei is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Hubei Geoway Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Geoway Investment 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 Hubei Geoway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Geoway Investment has no effect on the direction of Ping An i.e., Ping An and Hubei Geoway go up and down completely randomly.
Pair Corralation between Ping An and Hubei Geoway
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 0.31 times more return on investment than Hubei Geoway. However, Ping An Insurance is 3.23 times less risky than Hubei Geoway. It trades about -0.34 of its potential returns per unit of risk. Hubei Geoway Investment is currently generating about -0.14 per unit of risk. If you would invest 5,490 in Ping An Insurance on October 12, 2024 and sell it today you would lose (509.00) from holding Ping An Insurance or give up 9.27% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Ping An Insurance vs. Hubei Geoway Investment
Performance |
Timeline |
Ping An Insurance |
Hubei Geoway Investment |
Ping An and Hubei Geoway Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ping An and Hubei Geoway
The main advantage of trading using opposite Ping An and Hubei Geoway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Hubei Geoway 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 Hubei Geoway will offset losses from the drop in Hubei Geoway's long position.Ping An vs. Unisplendour Corp | Ping An vs. Konfoong Materials International | Ping An vs. Zhejiang JIULI Hi tech | Ping An vs. China Building Material |
Hubei Geoway vs. Jiangsu Broadcasting Cable | Hubei Geoway vs. Guangzhou Tinci Materials | Hubei Geoway vs. Hangzhou Gaoxin Rubber | Hubei Geoway vs. Anshan Senyuan Road |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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