Correlation Between Ping An and Zhongyin Babi
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By analyzing existing cross correlation between Ping An Insurance and Zhongyin Babi Food, you can compare the effects of market volatilities on Ping An and Zhongyin Babi 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 Zhongyin Babi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Zhongyin Babi.
Diversification Opportunities for Ping An and Zhongyin Babi
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ping and Zhongyin is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Zhongyin Babi Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongyin Babi 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 Zhongyin Babi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongyin Babi Food has no effect on the direction of Ping An i.e., Ping An and Zhongyin Babi go up and down completely randomly.
Pair Corralation between Ping An and Zhongyin Babi
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 0.76 times more return on investment than Zhongyin Babi. However, Ping An Insurance is 1.32 times less risky than Zhongyin Babi. It trades about 0.02 of its potential returns per unit of risk. Zhongyin Babi Food is currently generating about -0.04 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Zhongyin Babi Food
Performance |
| Timeline |
| Ping An Insurance |
| Zhongyin Babi Food |
Ping An and Zhongyin Babi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Zhongyin Babi
The main advantage of trading using opposite Ping An and Zhongyin Babi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Zhongyin Babi 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 Zhongyin Babi will offset losses from the drop in Zhongyin Babi'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 |
| Zhongyin Babi vs. Lootom Telcovideo Network | Zhongyin Babi vs. Cultural Investment Holdings | Zhongyin Babi vs. Kunwu Jiuding Investment | Zhongyin Babi vs. Shenzhen Topway Video |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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