Correlation Between Ping An and Chengdu B
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By analyzing existing cross correlation between Ping An Insurance and Chengdu B ray Media, you can compare the effects of market volatilities on Ping An and Chengdu B 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 Chengdu B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Chengdu B.
Diversification Opportunities for Ping An and Chengdu B
Average diversification
The 3 months correlation between Ping and Chengdu is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Chengdu B ray Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu B ray 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 Chengdu B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu B ray has no effect on the direction of Ping An i.e., Ping An and Chengdu B go up and down completely randomly.
Pair Corralation between Ping An and Chengdu B
Assuming the 90 days trading horizon Ping An is expected to generate 1.27 times less return on investment than Chengdu B. But when comparing it to its historical volatility, Ping An Insurance is 1.55 times less risky than Chengdu B. It trades about 0.1 of its potential returns per unit of risk. Chengdu B ray Media is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 369.00 in Chengdu B ray Media on September 27, 2024 and sell it today you would earn a total of 125.00 from holding Chengdu B ray Media or generate 33.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Chengdu B ray Media
Performance |
| Timeline |
| Ping An Insurance |
| Chengdu B ray |
Ping An and Chengdu B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Chengdu B
The main advantage of trading using opposite Ping An and Chengdu B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Chengdu B 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 Chengdu B will offset losses from the drop in Chengdu B's long position.| Ping An vs. Kweichow Moutai Co | Ping An vs. Shenzhen Mindray Bio Medical | Ping An vs. Jiangsu Pacific Quartz | Ping An vs. G bits Network Technology |
| Chengdu B vs. Agricultural Bank of | Chengdu B vs. Chinese Universe Publishing | Chengdu B vs. HeNan Splendor Science | Chengdu B vs. Shanghai Action Education |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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