Correlation Between Ping An and Liaoning Port
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By analyzing existing cross correlation between Ping An Insurance and Liaoning Port Co, you can compare the effects of market volatilities on Ping An and Liaoning Port 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 Liaoning Port. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Liaoning Port.
Diversification Opportunities for Ping An and Liaoning Port
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ping and Liaoning is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Liaoning Port Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liaoning Port 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 Liaoning Port. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liaoning Port has no effect on the direction of Ping An i.e., Ping An and Liaoning Port go up and down completely randomly.
Pair Corralation between Ping An and Liaoning Port
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 1.21 times more return on investment than Liaoning Port. However, Ping An is 1.21 times more volatile than Liaoning Port Co. It trades about 0.07 of its potential returns per unit of risk. Liaoning Port Co is currently generating about 0.02 per unit of risk. If you would invest 4,290 in Ping An Insurance on August 27, 2024 and sell it today you would earn a total of 1,013 from holding Ping An Insurance or generate 23.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Liaoning Port Co
Performance |
| Timeline |
| Ping An Insurance |
| Liaoning Port |
Ping An and Liaoning Port Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Liaoning Port
The main advantage of trading using opposite Ping An and Liaoning Port positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Liaoning Port 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 Liaoning Port will offset losses from the drop in Liaoning Port's long position.| Ping An vs. Ming Yang Smart | Ping An vs. 159681 | Ping An vs. 159005 | Ping An vs. Loctek Ergonomic Technology |
| Liaoning Port vs. Industrial and Commercial | Liaoning Port vs. Agricultural Bank of | Liaoning Port vs. China Construction Bank | Liaoning Port 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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