Correlation Between Ping An and Wuhan Xianglong
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By analyzing existing cross correlation between Ping An Insurance and Wuhan Xianglong Power, you can compare the effects of market volatilities on Ping An and Wuhan Xianglong 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 Wuhan Xianglong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Wuhan Xianglong.
Diversification Opportunities for Ping An and Wuhan Xianglong
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ping and Wuhan is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Wuhan Xianglong Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Xianglong Power 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 Wuhan Xianglong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Xianglong Power has no effect on the direction of Ping An i.e., Ping An and Wuhan Xianglong go up and down completely randomly.
Pair Corralation between Ping An and Wuhan Xianglong
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 0.49 times more return on investment than Wuhan Xianglong. However, Ping An Insurance is 2.04 times less risky than Wuhan Xianglong. It trades about -0.15 of its potential returns per unit of risk. Wuhan Xianglong Power is currently generating about -0.09 per unit of risk. If you would invest 5,327 in Ping An Insurance on October 28, 2024 and sell it today you would lose (241.00) from holding Ping An Insurance or give up 4.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Wuhan Xianglong Power
Performance |
| Timeline |
| Ping An Insurance |
| Wuhan Xianglong Power |
Ping An and Wuhan Xianglong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Wuhan Xianglong
The main advantage of trading using opposite Ping An and Wuhan Xianglong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Wuhan Xianglong 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 Wuhan Xianglong will offset losses from the drop in Wuhan Xianglong's long position.| Ping An vs. Holitech Technology Co | Ping An vs. Peoples Insurance of | Ping An vs. Zhonghang Electronic Measuring | Ping An vs. Leyard Optoelectronic |
| Wuhan Xianglong vs. Industrial and Commercial | Wuhan Xianglong vs. China Construction Bank | Wuhan Xianglong vs. Agricultural Bank of | Wuhan Xianglong 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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