Correlation Between Ping An and Datang HuaYin
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By analyzing existing cross correlation between Ping An Insurance and Datang HuaYin Electric, you can compare the effects of market volatilities on Ping An and Datang HuaYin 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 Datang HuaYin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Datang HuaYin.
Diversification Opportunities for Ping An and Datang HuaYin
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ping and Datang is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Datang HuaYin Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datang HuaYin Electric 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 Datang HuaYin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datang HuaYin Electric has no effect on the direction of Ping An i.e., Ping An and Datang HuaYin go up and down completely randomly.
Pair Corralation between Ping An and Datang HuaYin
Assuming the 90 days trading horizon Ping An is expected to generate 2.54 times less return on investment than Datang HuaYin. In addition to that, Ping An is 1.02 times more volatile than Datang HuaYin Electric. It trades about 0.03 of its total potential returns per unit of risk. Datang HuaYin Electric is currently generating about 0.09 per unit of volatility. If you would invest 307.00 in Datang HuaYin Electric on August 28, 2024 and sell it today you would earn a total of 28.00 from holding Datang HuaYin Electric or generate 9.12% 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. Datang HuaYin Electric
Performance |
| Timeline |
| Ping An Insurance |
| Datang HuaYin Electric |
Ping An and Datang HuaYin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Datang HuaYin
The main advantage of trading using opposite Ping An and Datang HuaYin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Datang HuaYin 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 Datang HuaYin will offset losses from the drop in Datang HuaYin's long position.| Ping An vs. Ming Yang Smart | Ping An vs. 159681 | Ping An vs. 159005 | Ping An vs. Loctek Ergonomic Technology |
| Datang HuaYin vs. Industrial and Commercial | Datang HuaYin vs. China Construction Bank | Datang HuaYin vs. Agricultural Bank of | Datang HuaYin vs. Bank of China |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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