Correlation Between Ping An and Jiangsu Xinri
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By analyzing existing cross correlation between Ping An Insurance and Jiangsu Xinri E Vehicle, you can compare the effects of market volatilities on Ping An and Jiangsu Xinri 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 Jiangsu Xinri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Jiangsu Xinri.
Diversification Opportunities for Ping An and Jiangsu Xinri
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ping and Jiangsu is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Jiangsu Xinri E Vehicle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinri E 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 Jiangsu Xinri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinri E has no effect on the direction of Ping An i.e., Ping An and Jiangsu Xinri go up and down completely randomly.
Pair Corralation between Ping An and Jiangsu Xinri
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 0.62 times more return on investment than Jiangsu Xinri. However, Ping An Insurance is 1.61 times less risky than Jiangsu Xinri. It trades about 0.03 of its potential returns per unit of risk. Jiangsu Xinri E Vehicle is currently generating about -0.03 per unit of risk. If you would invest 4,798 in Ping An Insurance on September 1, 2024 and sell it today you would earn a total of 527.00 from holding Ping An Insurance or generate 10.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Jiangsu Xinri E Vehicle
Performance |
| Timeline |
| Ping An Insurance |
| Jiangsu Xinri E |
Ping An and Jiangsu Xinri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Jiangsu Xinri
The main advantage of trading using opposite Ping An and Jiangsu Xinri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Jiangsu Xinri 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 Jiangsu Xinri will offset losses from the drop in Jiangsu Xinri's long position.| Ping An vs. Industrial and Commercial | Ping An vs. China Construction Bank | Ping An vs. Bank of China | Ping An vs. Agricultural Bank of |
| Jiangsu Xinri vs. Dawning Information Industry | Jiangsu Xinri vs. Ye Chiu Metal | Jiangsu Xinri vs. State Grid InformationCommunication | Jiangsu Xinri vs. Offshore Oil Engineering |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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