Correlation Between Ping An and China Satellite
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By analyzing existing cross correlation between Ping An Insurance and China Satellite Communications, you can compare the effects of market volatilities on Ping An and China Satellite 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 China Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and China Satellite.
Diversification Opportunities for Ping An and China Satellite
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ping and China is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and China Satellite Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Satellite Comm 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 China Satellite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Satellite Comm has no effect on the direction of Ping An i.e., Ping An and China Satellite go up and down completely randomly.
Pair Corralation between Ping An and China Satellite
Assuming the 90 days trading horizon Ping An Insurance is expected to under-perform the China Satellite. But the stock apears to be less risky and, when comparing its historical volatility, Ping An Insurance is 2.78 times less risky than China Satellite. The stock trades about -0.16 of its potential returns per unit of risk. The China Satellite Communications is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,733 in China Satellite Communications on August 29, 2024 and sell it today you would earn a total of 284.00 from holding China Satellite Communications or generate 16.39% 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. China Satellite Communications
Performance |
| Timeline |
| Ping An Insurance |
| China Satellite Comm |
Ping An and China Satellite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and China Satellite
The main advantage of trading using opposite Ping An and China Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, China Satellite 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 China Satellite will offset losses from the drop in China Satellite's long position.| Ping An vs. Kweichow Moutai Co | Ping An vs. Contemporary Amperex Technology | Ping An vs. G bits Network Technology | Ping An vs. BYD Co Ltd |
| China Satellite vs. Industrial and Commercial | China Satellite vs. Agricultural Bank of | China Satellite vs. China Construction Bank | China Satellite 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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