Correlation Between Ping An and Peoples Insurance
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By analyzing existing cross correlation between Ping An Insurance and Peoples Insurance of, you can compare the effects of market volatilities on Ping An and Peoples Insurance 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 Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Peoples Insurance.
Diversification Opportunities for Ping An and Peoples Insurance
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ping and Peoples is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Peoples Insurance of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance 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 Peoples Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peoples Insurance has no effect on the direction of Ping An i.e., Ping An and Peoples Insurance go up and down completely randomly.
Pair Corralation between Ping An and Peoples Insurance
Assuming the 90 days trading horizon Ping An Insurance is expected to under-perform the Peoples Insurance. But the stock apears to be less risky and, when comparing its historical volatility, Ping An Insurance is 1.08 times less risky than Peoples Insurance. The stock trades about -0.16 of its potential returns per unit of risk. The Peoples Insurance of is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 726.00 in Peoples Insurance of on August 29, 2024 and sell it today you would lose (15.00) from holding Peoples Insurance of or give up 2.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Peoples Insurance of
Performance |
| Timeline |
| Ping An Insurance |
| Peoples Insurance |
Ping An and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Peoples Insurance
The main advantage of trading using opposite Ping An and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Peoples Insurance 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 Peoples Insurance will offset losses from the drop in Peoples Insurance's long position.| Ping An vs. Ming Yang Smart | Ping An vs. 159681 | Ping An vs. 159005 | Ping An vs. Loctek Ergonomic Technology |
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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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