Correlation Between Ping An and Suzhou Xingye
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By analyzing existing cross correlation between Ping An Insurance and Suzhou Xingye Material, you can compare the effects of market volatilities on Ping An and Suzhou Xingye 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 Suzhou Xingye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Suzhou Xingye.
Diversification Opportunities for Ping An and Suzhou Xingye
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ping and Suzhou is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Suzhou Xingye Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Xingye Material 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 Suzhou Xingye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Xingye Material has no effect on the direction of Ping An i.e., Ping An and Suzhou Xingye go up and down completely randomly.
Pair Corralation between Ping An and Suzhou Xingye
Assuming the 90 days trading horizon Ping An is expected to generate 45.91 times less return on investment than Suzhou Xingye. But when comparing it to its historical volatility, Ping An Insurance is 5.2 times less risky than Suzhou Xingye. It trades about 0.06 of its potential returns per unit of risk. Suzhou Xingye Material is currently generating about 0.52 of returns per unit of risk over similar time horizon. If you would invest 783.00 in Suzhou Xingye Material on November 4, 2024 and sell it today you would earn a total of 524.00 from holding Suzhou Xingye Material or generate 66.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Suzhou Xingye Material
Performance |
| Timeline |
| Ping An Insurance |
| Suzhou Xingye Material |
Ping An and Suzhou Xingye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Suzhou Xingye
The main advantage of trading using opposite Ping An and Suzhou Xingye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Suzhou Xingye 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 Suzhou Xingye will offset losses from the drop in Suzhou Xingye's long position.| Ping An vs. Beijing Kaiwen Education | Ping An vs. Jiangsu Phoenix Publishing | Ping An vs. Yili Chuanning Biotechnology | Ping An vs. Changjiang Publishing Media |
| Suzhou Xingye vs. Anhui Transport Consulting | Suzhou Xingye vs. Guangzhou Seagull Kitchen | Suzhou Xingye vs. Chahua Modern Housewares | Suzhou Xingye vs. Yindu Kitchen Equipment |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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