Correlation Between Ping An and Beijing Shanghai
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By analyzing existing cross correlation between Ping An Insurance and Beijing Shanghai High Speed, you can compare the effects of market volatilities on Ping An and Beijing Shanghai 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 Beijing Shanghai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Beijing Shanghai.
Diversification Opportunities for Ping An and Beijing Shanghai
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ping and Beijing is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Beijing Shanghai High Speed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Shanghai High 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 Beijing Shanghai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Shanghai High has no effect on the direction of Ping An i.e., Ping An and Beijing Shanghai go up and down completely randomly.
Pair Corralation between Ping An and Beijing Shanghai
Assuming the 90 days trading horizon Ping An is expected to generate 1.01 times less return on investment than Beijing Shanghai. In addition to that, Ping An is 1.35 times more volatile than Beijing Shanghai High Speed. It trades about 0.03 of its total potential returns per unit of risk. Beijing Shanghai High Speed is currently generating about 0.04 per unit of volatility. If you would invest 495.00 in Beijing Shanghai High Speed on September 5, 2024 and sell it today you would earn a total of 126.00 from holding Beijing Shanghai High Speed or generate 25.45% 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. Beijing Shanghai High Speed
Performance |
| Timeline |
| Ping An Insurance |
| Beijing Shanghai High |
Ping An and Beijing Shanghai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Beijing Shanghai
The main advantage of trading using opposite Ping An and Beijing Shanghai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Beijing Shanghai 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 Beijing Shanghai will offset losses from the drop in Beijing Shanghai's long position.| Ping An vs. Southchip Semiconductor Technology | Ping An vs. Allwin Telecommunication Co | Ping An vs. Sunwave Communications Co | Ping An vs. Iat Automobile Technology |
| Beijing Shanghai vs. Songz Automobile Air | Beijing Shanghai vs. Northking Information Technology | Beijing Shanghai vs. Tianshui Huatian Technology | Beijing Shanghai vs. CIMC Vehicles Co |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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