Correlation Between Ping An and Zhangjiagang Elegant
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By analyzing existing cross correlation between Ping An Insurance and Zhangjiagang Elegant Home, you can compare the effects of market volatilities on Ping An and Zhangjiagang Elegant 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 Zhangjiagang Elegant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Zhangjiagang Elegant.
Diversification Opportunities for Ping An and Zhangjiagang Elegant
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ping and Zhangjiagang is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Zhangjiagang Elegant Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhangjiagang Elegant Home 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 Zhangjiagang Elegant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhangjiagang Elegant Home has no effect on the direction of Ping An i.e., Ping An and Zhangjiagang Elegant go up and down completely randomly.
Pair Corralation between Ping An and Zhangjiagang Elegant
Assuming the 90 days trading horizon Ping An is expected to generate 2.04 times less return on investment than Zhangjiagang Elegant. But when comparing it to its historical volatility, Ping An Insurance is 1.74 times less risky than Zhangjiagang Elegant. It trades about 0.02 of its potential returns per unit of risk. Zhangjiagang Elegant Home is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 850.00 in Zhangjiagang Elegant Home on October 27, 2024 and sell it today you would earn a total of 88.00 from holding Zhangjiagang Elegant Home or generate 10.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Zhangjiagang Elegant Home
Performance |
| Timeline |
| Ping An Insurance |
| Zhangjiagang Elegant Home |
Ping An and Zhangjiagang Elegant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Zhangjiagang Elegant
The main advantage of trading using opposite Ping An and Zhangjiagang Elegant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Zhangjiagang Elegant 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 Zhangjiagang Elegant will offset losses from the drop in Zhangjiagang Elegant'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 |
| Zhangjiagang Elegant vs. Industrial and Commercial | Zhangjiagang Elegant vs. China Construction Bank | Zhangjiagang Elegant vs. Bank of China | Zhangjiagang Elegant vs. Agricultural Bank of |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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