Correlation Between Ping An and Jiahe Foods
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By analyzing existing cross correlation between Ping An Insurance and Jiahe Foods Industry, you can compare the effects of market volatilities on Ping An and Jiahe Foods 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 Jiahe Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Jiahe Foods.
Diversification Opportunities for Ping An and Jiahe Foods
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ping and Jiahe is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Jiahe Foods Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiahe Foods Industry 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 Jiahe Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiahe Foods Industry has no effect on the direction of Ping An i.e., Ping An and Jiahe Foods go up and down completely randomly.
Pair Corralation between Ping An and Jiahe Foods
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 0.65 times more return on investment than Jiahe Foods. However, Ping An Insurance is 1.54 times less risky than Jiahe Foods. It trades about 0.08 of its potential returns per unit of risk. Jiahe Foods Industry is currently generating about 0.02 per unit of risk. If you would invest 3,960 in Ping An Insurance on September 4, 2024 and sell it today you would earn a total of 1,441 from holding Ping An Insurance or generate 36.39% 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. Jiahe Foods Industry
Performance |
| Timeline |
| Ping An Insurance |
| Jiahe Foods Industry |
Ping An and Jiahe Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Jiahe Foods
The main advantage of trading using opposite Ping An and Jiahe Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Jiahe Foods 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 Jiahe Foods will offset losses from the drop in Jiahe Foods' long position.| Ping An vs. Dazhong Transportation Group | Ping An vs. Hainan Haiqi Transportation | Ping An vs. Lander Sports Development | Ping An vs. Hengdian Entertainment Co |
| Jiahe Foods vs. Poly Real Estate | Jiahe Foods vs. China Vanke Co | Jiahe Foods vs. China Merchants Shekou | Jiahe Foods vs. Huafa Industrial Co |
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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