Correlation Between Ping An and Shanghai Action
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By analyzing existing cross correlation between Ping An Insurance and Shanghai Action Education, you can compare the effects of market volatilities on Ping An and Shanghai Action 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 Shanghai Action. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Shanghai Action.
Diversification Opportunities for Ping An and Shanghai Action
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ping and Shanghai is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Shanghai Action Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Action Education 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 Shanghai Action. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Action Education has no effect on the direction of Ping An i.e., Ping An and Shanghai Action go up and down completely randomly.
Pair Corralation between Ping An and Shanghai Action
Assuming the 90 days trading horizon Ping An is expected to generate 1.77 times less return on investment than Shanghai Action. But when comparing it to its historical volatility, Ping An Insurance is 1.51 times less risky than Shanghai Action. It trades about 0.03 of its potential returns per unit of risk. Shanghai Action Education is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,544 in Shanghai Action Education on September 16, 2024 and sell it today you would earn a total of 1,040 from holding Shanghai Action Education or generate 40.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Shanghai Action Education
Performance |
| Timeline |
| Ping An Insurance |
| Shanghai Action Education |
Ping An and Shanghai Action Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Shanghai Action
The main advantage of trading using opposite Ping An and Shanghai Action positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Shanghai Action 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 Shanghai Action will offset losses from the drop in Shanghai Action's long position.| Ping An vs. BYD Co Ltd | Ping An vs. China Mobile Limited | Ping An vs. Agricultural Bank of | Ping An vs. Industrial and Commercial |
| Shanghai Action vs. PetroChina Co Ltd | Shanghai Action vs. China Mobile Limited | Shanghai Action vs. CNOOC Limited | Shanghai Action vs. Ping An Insurance |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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