Correlation Between Ping An and Sichuan Furong
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By analyzing existing cross correlation between Ping An Insurance and Sichuan Furong Technology, you can compare the effects of market volatilities on Ping An and Sichuan Furong 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 Furong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Sichuan Furong.
Diversification Opportunities for Ping An and Sichuan Furong
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ping and Sichuan is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Sichuan Furong Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Furong Technology 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 Furong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Furong Technology has no effect on the direction of Ping An i.e., Ping An and Sichuan Furong go up and down completely randomly.
Pair Corralation between Ping An and Sichuan Furong
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 0.58 times more return on investment than Sichuan Furong. However, Ping An Insurance is 1.73 times less risky than Sichuan Furong. It trades about 0.06 of its potential returns per unit of risk. Sichuan Furong Technology is currently generating about -0.13 per unit of risk. If you would invest 5,305 in Ping An Insurance on September 27, 2024 and sell it today you would earn a total of 85.00 from holding Ping An Insurance or generate 1.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Ping An Insurance vs. Sichuan Furong Technology
Performance |
| Timeline |
| Ping An Insurance |
| Sichuan Furong Technology |
Ping An and Sichuan Furong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Sichuan Furong
The main advantage of trading using opposite Ping An and Sichuan Furong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Sichuan Furong 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 Furong will offset losses from the drop in Sichuan Furong's long position.| Ping An vs. Kweichow Moutai Co | Ping An vs. Shenzhen Mindray Bio Medical | Ping An vs. Jiangsu Pacific Quartz | Ping An vs. G bits Network Technology |
| Sichuan Furong vs. Bank of China | Sichuan Furong vs. Kweichow Moutai Co | Sichuan Furong vs. PetroChina Co Ltd | Sichuan Furong vs. Bank of Communications |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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