Correlation Between Ping An and Yunnan Jianzhijia
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By analyzing existing cross correlation between Ping An Insurance and Yunnan Jianzhijia Health Chain, you can compare the effects of market volatilities on Ping An and Yunnan Jianzhijia 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 Yunnan Jianzhijia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Yunnan Jianzhijia.
Diversification Opportunities for Ping An and Yunnan Jianzhijia
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ping and Yunnan is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Yunnan Jianzhijia Health Chain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Jianzhijia 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 Yunnan Jianzhijia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Jianzhijia has no effect on the direction of Ping An i.e., Ping An and Yunnan Jianzhijia go up and down completely randomly.
Pair Corralation between Ping An and Yunnan Jianzhijia
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 0.62 times more return on investment than Yunnan Jianzhijia. However, Ping An Insurance is 1.6 times less risky than Yunnan Jianzhijia. It trades about 0.02 of its potential returns per unit of risk. Yunnan Jianzhijia Health Chain is currently generating about -0.05 per unit of risk. If you would invest 4,580 in Ping An Insurance on November 27, 2024 and sell it today you would earn a total of 620.00 from holding Ping An Insurance or generate 13.54% 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. Yunnan Jianzhijia Health Chain
Performance |
| Timeline |
| Ping An Insurance |
| Yunnan Jianzhijia |
Ping An and Yunnan Jianzhijia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Yunnan Jianzhijia
The main advantage of trading using opposite Ping An and Yunnan Jianzhijia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Yunnan Jianzhijia 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 Yunnan Jianzhijia will offset losses from the drop in Yunnan Jianzhijia's long position.| Ping An vs. Central China Land | Ping An vs. Changjiang Publishing Media | Ping An vs. Ningbo Bohui Chemical | Ping An vs. Lander Sports Development |
| Yunnan Jianzhijia vs. Soochow Suzhou Industrial | Yunnan Jianzhijia vs. Ningbo Fujia Industrial | Yunnan Jianzhijia vs. Guangzhou Haozhi Industrial | Yunnan Jianzhijia vs. Double Medical Technology |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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