Correlation Between Ping An and Anhui Transport
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By analyzing existing cross correlation between Ping An Insurance and Anhui Transport Consulting, you can compare the effects of market volatilities on Ping An and Anhui Transport 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 Anhui Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Anhui Transport.
Diversification Opportunities for Ping An and Anhui Transport
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ping and Anhui is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Anhui Transport Consulting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Transport Cons 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 Anhui Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Transport Cons has no effect on the direction of Ping An i.e., Ping An and Anhui Transport go up and down completely randomly.
Pair Corralation between Ping An and Anhui Transport
Assuming the 90 days trading horizon Ping An Insurance is expected to under-perform the Anhui Transport. But the stock apears to be less risky and, when comparing its historical volatility, Ping An Insurance is 1.03 times less risky than Anhui Transport. The stock trades about -0.36 of its potential returns per unit of risk. The Anhui Transport Consulting is currently generating about -0.23 of returns per unit of risk over similar time horizon. If you would invest 919.00 in Anhui Transport Consulting on October 25, 2024 and sell it today you would lose (56.00) from holding Anhui Transport Consulting or give up 6.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Anhui Transport Consulting
Performance |
| Timeline |
| Ping An Insurance |
| Anhui Transport Cons |
Ping An and Anhui Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Anhui Transport
The main advantage of trading using opposite Ping An and Anhui Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Anhui Transport 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 Anhui Transport will offset losses from the drop in Anhui Transport's long position.| Ping An vs. JCHX Mining Management | Ping An vs. Zoje Resources Investment | Ping An vs. Huaxia Fund Management | Ping An vs. Sportsoul Co Ltd |
| Anhui Transport vs. Kweichow Moutai Co | Anhui Transport vs. Contemporary Amperex Technology | Anhui Transport vs. Beijing Roborock Technology | Anhui Transport vs. BYD Co Ltd |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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