Correlation Between Ping An and Sichuan Teway
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ping An Insurance and Sichuan Teway Food, you can compare the effects of market volatilities on Ping An and Sichuan Teway 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 Sichuan Teway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Sichuan Teway.
Diversification Opportunities for Ping An and Sichuan Teway
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ping and Sichuan is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Sichuan Teway Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Teway Food 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 Sichuan Teway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Teway Food has no effect on the direction of Ping An i.e., Ping An and Sichuan Teway go up and down completely randomly.
Pair Corralation between Ping An and Sichuan Teway
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 0.89 times more return on investment than Sichuan Teway. However, Ping An Insurance is 1.12 times less risky than Sichuan Teway. It trades about 0.14 of its potential returns per unit of risk. Sichuan Teway Food is currently generating about -0.37 per unit of risk. If you would invest 5,085 in Ping An Insurance on November 27, 2024 and sell it today you would earn a total of 115.00 from holding Ping An Insurance or generate 2.26% 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. Sichuan Teway Food
Performance |
| Timeline |
| Ping An Insurance |
| Sichuan Teway Food |
Ping An and Sichuan Teway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Sichuan Teway
The main advantage of trading using opposite Ping An and Sichuan Teway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Sichuan Teway 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 Sichuan Teway will offset losses from the drop in Sichuan Teway's long position.| Ping An vs. Central China Land | Ping An vs. Changjiang Publishing Media | Ping An vs. Ningbo Bohui Chemical | Ping An vs. Lander Sports Development |
| Sichuan Teway vs. Kweichow Moutai Co | Sichuan Teway vs. Wuliangye Yibin Co | Sichuan Teway vs. Shenzhen Mindray Bio Medical | Sichuan Teway vs. G bits Network Technology |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |