Correlation Between Ping An and Zhongzhu Medical
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By analyzing existing cross correlation between Ping An Insurance and Zhongzhu Medical Holdings, you can compare the effects of market volatilities on Ping An and Zhongzhu Medical 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 Zhongzhu Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Zhongzhu Medical.
Diversification Opportunities for Ping An and Zhongzhu Medical
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ping and Zhongzhu is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Zhongzhu Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongzhu Medical Holdings 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 Zhongzhu Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongzhu Medical Holdings has no effect on the direction of Ping An i.e., Ping An and Zhongzhu Medical go up and down completely randomly.
Pair Corralation between Ping An and Zhongzhu Medical
Assuming the 90 days trading horizon Ping An Insurance is expected to under-perform the Zhongzhu Medical. But the stock apears to be less risky and, when comparing its historical volatility, Ping An Insurance is 1.3 times less risky than Zhongzhu Medical. The stock trades about -0.16 of its potential returns per unit of risk. The Zhongzhu Medical Holdings is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 153.00 in Zhongzhu Medical Holdings on September 15, 2024 and sell it today you would lose (3.00) from holding Zhongzhu Medical Holdings or give up 1.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Zhongzhu Medical Holdings
Performance |
| Timeline |
| Ping An Insurance |
| Zhongzhu Medical Holdings |
Ping An and Zhongzhu Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Zhongzhu Medical
The main advantage of trading using opposite Ping An and Zhongzhu Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Zhongzhu Medical 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 Zhongzhu Medical will offset losses from the drop in Zhongzhu Medical'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 |
| Zhongzhu Medical vs. Zhongtong Guomai Communication | Zhongzhu Medical vs. Tongyu Communication | Zhongzhu Medical vs. Nanjing Putian Telecommunications | Zhongzhu Medical 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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