Correlation Between Ping An and Suzhou Weizhixiang
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By analyzing existing cross correlation between Ping An Insurance and Suzhou Weizhixiang Food, you can compare the effects of market volatilities on Ping An and Suzhou Weizhixiang 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 Weizhixiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Suzhou Weizhixiang.
Diversification Opportunities for Ping An and Suzhou Weizhixiang
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ping and Suzhou is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Suzhou Weizhixiang Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Weizhixiang Food 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 Weizhixiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Weizhixiang Food has no effect on the direction of Ping An i.e., Ping An and Suzhou Weizhixiang go up and down completely randomly.
Pair Corralation between Ping An and Suzhou Weizhixiang
Assuming the 90 days trading horizon Ping An Insurance is expected to under-perform the Suzhou Weizhixiang. But the stock apears to be less risky and, when comparing its historical volatility, Ping An Insurance is 1.45 times less risky than Suzhou Weizhixiang. The stock trades about -0.14 of its potential returns per unit of risk. The Suzhou Weizhixiang Food is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,080 in Suzhou Weizhixiang Food on August 30, 2024 and sell it today you would earn a total of 275.00 from holding Suzhou Weizhixiang Food or generate 13.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Ping An Insurance vs. Suzhou Weizhixiang Food
Performance |
| Timeline |
| Ping An Insurance |
| Suzhou Weizhixiang Food |
Ping An and Suzhou Weizhixiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Suzhou Weizhixiang
The main advantage of trading using opposite Ping An and Suzhou Weizhixiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Suzhou Weizhixiang 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 Weizhixiang will offset losses from the drop in Suzhou Weizhixiang's long position.| Ping An vs. Industrial and Commercial | Ping An vs. Agricultural Bank of | Ping An vs. China Construction Bank | Ping An vs. Bank of China |
| Suzhou Weizhixiang vs. Industrial and Commercial | Suzhou Weizhixiang vs. China Construction Bank | Suzhou Weizhixiang vs. Agricultural Bank of | Suzhou Weizhixiang vs. Bank of China |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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