Correlation Between Ping An and Jiangsu Bioperfectus
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By analyzing existing cross correlation between Ping An Insurance and Jiangsu Bioperfectus Technologies, you can compare the effects of market volatilities on Ping An and Jiangsu Bioperfectus 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 Jiangsu Bioperfectus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Jiangsu Bioperfectus.
Diversification Opportunities for Ping An and Jiangsu Bioperfectus
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ping and Jiangsu is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Jiangsu Bioperfectus Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Bioperfectus 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 Jiangsu Bioperfectus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Bioperfectus has no effect on the direction of Ping An i.e., Ping An and Jiangsu Bioperfectus go up and down completely randomly.
Pair Corralation between Ping An and Jiangsu Bioperfectus
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 0.97 times more return on investment than Jiangsu Bioperfectus. However, Ping An Insurance is 1.03 times less risky than Jiangsu Bioperfectus. It trades about 0.13 of its potential returns per unit of risk. Jiangsu Bioperfectus Technologies is currently generating about -0.04 per unit of risk. If you would invest 4,345 in Ping An Insurance on September 2, 2024 and sell it today you would earn a total of 980.00 from holding Ping An Insurance or generate 22.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Jiangsu Bioperfectus Technolog
Performance |
| Timeline |
| Ping An Insurance |
| Jiangsu Bioperfectus |
Ping An and Jiangsu Bioperfectus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Jiangsu Bioperfectus
The main advantage of trading using opposite Ping An and Jiangsu Bioperfectus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Jiangsu Bioperfectus 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 Jiangsu Bioperfectus will offset losses from the drop in Jiangsu Bioperfectus' long position.| Ping An vs. Mingchen Health Co | Ping An vs. Hangzhou Minsheng Healthcare | Ping An vs. By health | Ping An vs. Shandong Longquan Pipeline |
| Jiangsu Bioperfectus vs. PetroChina Co Ltd | Jiangsu Bioperfectus vs. China Mobile Limited | Jiangsu Bioperfectus vs. CNOOC Limited | Jiangsu Bioperfectus 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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