Correlation Between Ping An and Shanghai Broadband
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By analyzing existing cross correlation between Ping An Insurance and Shanghai Broadband Technology, you can compare the effects of market volatilities on Ping An and Shanghai Broadband 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 Shanghai Broadband. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Shanghai Broadband.
Diversification Opportunities for Ping An and Shanghai Broadband
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ping and Shanghai is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Shanghai Broadband Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Broadband 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 Shanghai Broadband. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Broadband has no effect on the direction of Ping An i.e., Ping An and Shanghai Broadband go up and down completely randomly.
Pair Corralation between Ping An and Shanghai Broadband
Assuming the 90 days trading horizon Ping An Insurance is expected to under-perform the Shanghai Broadband. But the stock apears to be less risky and, when comparing its historical volatility, Ping An Insurance is 1.79 times less risky than Shanghai Broadband. The stock trades about -0.11 of its potential returns per unit of risk. The Shanghai Broadband Technology is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 365.00 in Shanghai Broadband Technology on September 13, 2024 and sell it today you would earn a total of 20.00 from holding Shanghai Broadband Technology or generate 5.48% 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. Shanghai Broadband Technology
Performance |
| Timeline |
| Ping An Insurance |
| Shanghai Broadband |
Ping An and Shanghai Broadband Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Shanghai Broadband
The main advantage of trading using opposite Ping An and Shanghai Broadband positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Shanghai Broadband 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 Shanghai Broadband will offset losses from the drop in Shanghai Broadband'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 |
| Shanghai Broadband vs. Zijin Mining Group | Shanghai Broadband vs. Wanhua Chemical Group | Shanghai Broadband vs. Baoshan Iron Steel | Shanghai Broadband vs. Shandong Gold Mining |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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