Correlation Between Ping An and Zhengping RoadBridge
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By analyzing existing cross correlation between Ping An Insurance and Zhengping RoadBridge Constr, you can compare the effects of market volatilities on Ping An and Zhengping RoadBridge 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 Zhengping RoadBridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Zhengping RoadBridge.
Diversification Opportunities for Ping An and Zhengping RoadBridge
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ping and Zhengping is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Zhengping RoadBridge Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengping RoadBridge 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 Zhengping RoadBridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengping RoadBridge has no effect on the direction of Ping An i.e., Ping An and Zhengping RoadBridge go up and down completely randomly.
Pair Corralation between Ping An and Zhengping RoadBridge
Assuming the 90 days trading horizon Ping An Insurance is expected to under-perform the Zhengping RoadBridge. But the stock apears to be less risky and, when comparing its historical volatility, Ping An Insurance is 4.12 times less risky than Zhengping RoadBridge. The stock trades about -0.38 of its potential returns per unit of risk. The Zhengping RoadBridge Constr is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 371.00 in Zhengping RoadBridge Constr on October 14, 2024 and sell it today you would lose (5.00) from holding Zhengping RoadBridge Constr or give up 1.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Zhengping RoadBridge Constr
Performance |
| Timeline |
| Ping An Insurance |
| Zhengping RoadBridge |
Ping An and Zhengping RoadBridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Zhengping RoadBridge
The main advantage of trading using opposite Ping An and Zhengping RoadBridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Zhengping RoadBridge 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 Zhengping RoadBridge will offset losses from the drop in Zhengping RoadBridge's long position.| Ping An vs. Gan Yuan Foods | Ping An vs. Caihong Display Devices | Ping An vs. Runjian Communication Co | Ping An vs. Shanghai Jinfeng Wine |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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