Correlation Between Ping An and Fuda Alloy
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By analyzing existing cross correlation between Ping An Insurance and Fuda Alloy Materials, you can compare the effects of market volatilities on Ping An and Fuda Alloy 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 Fuda Alloy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Fuda Alloy.
Diversification Opportunities for Ping An and Fuda Alloy
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ping and Fuda is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Fuda Alloy Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuda Alloy Materials 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 Fuda Alloy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuda Alloy Materials has no effect on the direction of Ping An i.e., Ping An and Fuda Alloy go up and down completely randomly.
Pair Corralation between Ping An and Fuda Alloy
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 0.81 times more return on investment than Fuda Alloy. However, Ping An Insurance is 1.24 times less risky than Fuda Alloy. It trades about 0.08 of its potential returns per unit of risk. Fuda Alloy Materials is currently generating about 0.06 per unit of risk. If you would invest 4,410 in Ping An Insurance on August 25, 2024 and sell it today you would earn a total of 893.00 from holding Ping An Insurance or generate 20.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Fuda Alloy Materials
Performance |
| Timeline |
| Ping An Insurance |
| Fuda Alloy Materials |
Ping An and Fuda Alloy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Fuda Alloy
The main advantage of trading using opposite Ping An and Fuda Alloy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Fuda Alloy 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 Fuda Alloy will offset losses from the drop in Fuda Alloy's long position.| Ping An vs. Ming Yang Smart | Ping An vs. 159681 | Ping An vs. 159005 | Ping An vs. Loctek Ergonomic Technology |
| Fuda Alloy vs. Ye Chiu Metal | Fuda Alloy vs. Union Semiconductor Co | Fuda Alloy vs. Ping An Insurance | Fuda Alloy vs. Xinjiang Baodi Mining |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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