Correlation Between Ping An and Shanghai Jinfeng
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By analyzing existing cross correlation between Ping An Insurance and Shanghai Jinfeng Wine, you can compare the effects of market volatilities on Ping An and Shanghai Jinfeng 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 Jinfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Shanghai Jinfeng.
Diversification Opportunities for Ping An and Shanghai Jinfeng
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ping and Shanghai is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Shanghai Jinfeng Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jinfeng Wine 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 Jinfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jinfeng Wine has no effect on the direction of Ping An i.e., Ping An and Shanghai Jinfeng go up and down completely randomly.
Pair Corralation between Ping An and Shanghai Jinfeng
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 0.79 times more return on investment than Shanghai Jinfeng. However, Ping An Insurance is 1.27 times less risky than Shanghai Jinfeng. It trades about 0.03 of its potential returns per unit of risk. Shanghai Jinfeng Wine is currently generating about 0.0 per unit of risk. If you would invest 4,616 in Ping An Insurance on August 30, 2024 and sell it today you would earn a total of 739.00 from holding Ping An Insurance or generate 16.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Shanghai Jinfeng Wine
Performance |
| Timeline |
| Ping An Insurance |
| Shanghai Jinfeng Wine |
Ping An and Shanghai Jinfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Shanghai Jinfeng
The main advantage of trading using opposite Ping An and Shanghai Jinfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Shanghai Jinfeng 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 Jinfeng will offset losses from the drop in Shanghai Jinfeng's long position.| Ping An vs. Kweichow Moutai Co | Ping An vs. Contemporary Amperex Technology | Ping An vs. G bits Network Technology | Ping An vs. BYD Co Ltd |
| Shanghai Jinfeng vs. PetroChina Co Ltd | Shanghai Jinfeng vs. China Mobile Limited | Shanghai Jinfeng vs. Ping An Insurance | Shanghai Jinfeng vs. China Petroleum Chemical |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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