Correlation Between Ping An and Ningbo Construction
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By analyzing existing cross correlation between Ping An Insurance and Ningbo Construction Co, you can compare the effects of market volatilities on Ping An and Ningbo Construction 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 Ningbo Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Ningbo Construction.
Diversification Opportunities for Ping An and Ningbo Construction
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ping and Ningbo is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Ningbo Construction Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Construction 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 Ningbo Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Construction has no effect on the direction of Ping An i.e., Ping An and Ningbo Construction go up and down completely randomly.
Pair Corralation between Ping An and Ningbo Construction
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 0.7 times more return on investment than Ningbo Construction. However, Ping An Insurance is 1.42 times less risky than Ningbo Construction. It trades about -0.12 of its potential returns per unit of risk. Ningbo Construction Co is currently generating about -0.14 per unit of risk. If you would invest 5,265 in Ping An Insurance on November 1, 2024 and sell it today you would lose (180.00) from holding Ping An Insurance or give up 3.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Ningbo Construction Co
Performance |
| Timeline |
| Ping An Insurance |
| Ningbo Construction |
Ping An and Ningbo Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Ningbo Construction
The main advantage of trading using opposite Ping An and Ningbo Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Ningbo Construction 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 Ningbo Construction will offset losses from the drop in Ningbo Construction's long position.| Ping An vs. Dongguan Tarry Electronics | Ping An vs. Sihui Fuji Electronics | Ping An vs. Jiangyin Jianghua Microelectronics | Ping An vs. Shenzhen Centralcon Investment |
| Ningbo Construction vs. Industrial and Commercial | Ningbo Construction vs. China Construction Bank | Ningbo Construction vs. Agricultural Bank of | Ningbo Construction 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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