Correlation Between Ping An and Fujian Anjoy
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By analyzing existing cross correlation between Ping An Insurance and Fujian Anjoy Foods, you can compare the effects of market volatilities on Ping An and Fujian Anjoy 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 Fujian Anjoy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Fujian Anjoy.
Diversification Opportunities for Ping An and Fujian Anjoy
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ping and Fujian is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Fujian Anjoy Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Anjoy Foods 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 Fujian Anjoy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Anjoy Foods has no effect on the direction of Ping An i.e., Ping An and Fujian Anjoy go up and down completely randomly.
Pair Corralation between Ping An and Fujian Anjoy
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 0.68 times more return on investment than Fujian Anjoy. However, Ping An Insurance is 1.47 times less risky than Fujian Anjoy. It trades about 0.04 of its potential returns per unit of risk. Fujian Anjoy Foods is currently generating about -0.05 per unit of risk. If you would invest 4,742 in Ping An Insurance on September 12, 2024 and sell it today you would earn a total of 820.00 from holding Ping An Insurance or generate 17.29% 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. Fujian Anjoy Foods
Performance |
| Timeline |
| Ping An Insurance |
| Fujian Anjoy Foods |
Ping An and Fujian Anjoy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Fujian Anjoy
The main advantage of trading using opposite Ping An and Fujian Anjoy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Fujian Anjoy 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 Fujian Anjoy will offset losses from the drop in Fujian Anjoy's long position.| Ping An vs. China Petroleum Chemical | Ping An vs. PetroChina Co Ltd | Ping An vs. China Mobile Limited | Ping An vs. Industrial and Commercial |
| Fujian Anjoy vs. China Petroleum Chemical | Fujian Anjoy vs. PetroChina Co Ltd | Fujian Anjoy vs. China State Construction | Fujian Anjoy vs. China Railway Group |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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