Correlation Between Ping An and Anhui Xinhua
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By analyzing existing cross correlation between Ping An Insurance and Anhui Xinhua Media, you can compare the effects of market volatilities on Ping An and Anhui Xinhua 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 Anhui Xinhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Anhui Xinhua.
Diversification Opportunities for Ping An and Anhui Xinhua
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ping and Anhui is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Anhui Xinhua Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Xinhua Media 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 Anhui Xinhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Xinhua Media has no effect on the direction of Ping An i.e., Ping An and Anhui Xinhua go up and down completely randomly.
Pair Corralation between Ping An and Anhui Xinhua
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 0.76 times more return on investment than Anhui Xinhua. However, Ping An Insurance is 1.32 times less risky than Anhui Xinhua. It trades about -0.15 of its potential returns per unit of risk. Anhui Xinhua Media is currently generating about -0.23 per unit of risk. If you would invest 5,327 in Ping An Insurance on October 28, 2024 and sell it today you would lose (241.00) from holding Ping An Insurance or give up 4.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Anhui Xinhua Media
Performance |
| Timeline |
| Ping An Insurance |
| Anhui Xinhua Media |
Ping An and Anhui Xinhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Anhui Xinhua
The main advantage of trading using opposite Ping An and Anhui Xinhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Anhui Xinhua 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 Anhui Xinhua will offset losses from the drop in Anhui Xinhua's long position.| Ping An vs. Industrial and Commercial | Ping An vs. Agricultural Bank of | Ping An vs. China Construction Bank | Ping An vs. Bank of China |
| Anhui Xinhua vs. PetroChina Co Ltd | Anhui Xinhua vs. China Mobile Limited | Anhui Xinhua vs. CNOOC Limited | Anhui Xinhua vs. Ping An Insurance |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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