Correlation Between Ping An and China Galaxy
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By analyzing existing cross correlation between Ping An Insurance and China Galaxy Securities, you can compare the effects of market volatilities on Ping An and China Galaxy 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 Galaxy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and China Galaxy.
Diversification Opportunities for Ping An and China Galaxy
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ping and China is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and China Galaxy Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Galaxy Securities 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 Galaxy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Galaxy Securities has no effect on the direction of Ping An i.e., Ping An and China Galaxy go up and down completely randomly.
Pair Corralation between Ping An and China Galaxy
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 0.52 times more return on investment than China Galaxy. However, Ping An Insurance is 1.93 times less risky than China Galaxy. It trades about -0.37 of its potential returns per unit of risk. China Galaxy Securities is currently generating about -0.26 per unit of risk. If you would invest 5,312 in Ping An Insurance on October 16, 2024 and sell it today you would lose (453.00) from holding Ping An Insurance or give up 8.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. China Galaxy Securities
Performance |
| Timeline |
| Ping An Insurance |
| China Galaxy Securities |
Ping An and China Galaxy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and China Galaxy
The main advantage of trading using opposite Ping An and China Galaxy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, China Galaxy 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 Galaxy will offset losses from the drop in China Galaxy's long position.| Ping An vs. Advanced Technology Materials | Ping An vs. Shanghai Phichem Material | Ping An vs. Caihong Display Devices | Ping An vs. Zhejiang JIULI Hi tech |
| China Galaxy vs. Hongrun Construction Group | China Galaxy vs. Oppein Home Group | China Galaxy vs. Jiugui Liquor Co | China Galaxy vs. Hunan Tyen Machinery |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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