Correlation Between Ping An and Longjian Road
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By analyzing existing cross correlation between Ping An Insurance and Longjian Road Bridge, you can compare the effects of market volatilities on Ping An and Longjian Road 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 Longjian Road. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Longjian Road.
Diversification Opportunities for Ping An and Longjian Road
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ping and Longjian is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Longjian Road Bridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longjian Road Bridge 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 Longjian Road. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longjian Road Bridge has no effect on the direction of Ping An i.e., Ping An and Longjian Road go up and down completely randomly.
Pair Corralation between Ping An and Longjian Road
Assuming the 90 days trading horizon Ping An Insurance is expected to under-perform the Longjian Road. In addition to that, Ping An is 1.11 times more volatile than Longjian Road Bridge. It trades about -0.1 of its total potential returns per unit of risk. Longjian Road Bridge is currently generating about 0.08 per unit of volatility. If you would invest 380.00 in Longjian Road Bridge on August 31, 2024 and sell it today you would earn a total of 12.00 from holding Longjian Road Bridge or generate 3.16% 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. Longjian Road Bridge
Performance |
| Timeline |
| Ping An Insurance |
| Longjian Road Bridge |
Ping An and Longjian Road Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Longjian Road
The main advantage of trading using opposite Ping An and Longjian Road positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Longjian Road 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 Longjian Road will offset losses from the drop in Longjian Road's long position.| Ping An vs. Agricultural Bank of | Ping An vs. Hangzhou Pinming Software | Ping An vs. Shandong Mining Machinery | Ping An vs. GuoChuang Software Co |
| Longjian Road vs. Cultural Investment Holdings | Longjian Road vs. Gome Telecom Equipment | Longjian Road vs. Bus Online Co | Longjian Road vs. Holitech Technology Co |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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