Correlation Between Ping An and Sinotrans
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By analyzing existing cross correlation between Ping An Insurance and Sinotrans Ltd Class, you can compare the effects of market volatilities on Ping An and Sinotrans 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 Sinotrans. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Sinotrans.
Diversification Opportunities for Ping An and Sinotrans
Poor diversification
The 3 months correlation between Ping and Sinotrans is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Sinotrans Ltd Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinotrans Class 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 Sinotrans. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinotrans Class has no effect on the direction of Ping An i.e., Ping An and Sinotrans go up and down completely randomly.
Pair Corralation between Ping An and Sinotrans
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 1.15 times more return on investment than Sinotrans. However, Ping An is 1.15 times more volatile than Sinotrans Ltd Class. It trades about 0.1 of its potential returns per unit of risk. Sinotrans Ltd Class is currently generating about -0.01 per unit of risk. If you would invest 4,162 in Ping An Insurance on September 28, 2024 and sell it today you would earn a total of 1,183 from holding Ping An Insurance or generate 28.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Sinotrans Ltd Class
Performance |
| Timeline |
| Ping An Insurance |
| Sinotrans Class |
Ping An and Sinotrans Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Sinotrans
The main advantage of trading using opposite Ping An and Sinotrans positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Sinotrans 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 Sinotrans will offset losses from the drop in Sinotrans' 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 |
| Sinotrans vs. Ming Yang Smart | Sinotrans vs. 159681 | Sinotrans vs. 159005 | Sinotrans vs. Loctek Ergonomic Technology |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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