Correlation Between Ping An and Anhui Huaheng
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By analyzing existing cross correlation between Ping An Insurance and Anhui Huaheng Biotechnology, you can compare the effects of market volatilities on Ping An and Anhui Huaheng 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 Anhui Huaheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Anhui Huaheng.
Diversification Opportunities for Ping An and Anhui Huaheng
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ping and Anhui is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Anhui Huaheng Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huaheng Biotec 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 Anhui Huaheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huaheng Biotec has no effect on the direction of Ping An i.e., Ping An and Anhui Huaheng go up and down completely randomly.
Pair Corralation between Ping An and Anhui Huaheng
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 0.56 times more return on investment than Anhui Huaheng. However, Ping An Insurance is 1.77 times less risky than Anhui Huaheng. It trades about -0.29 of its potential returns per unit of risk. Anhui Huaheng Biotechnology is currently generating about -0.59 per unit of risk. If you would invest 5,301 in Ping An Insurance on October 18, 2024 and sell it today you would lose (390.00) from holding Ping An Insurance or give up 7.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Anhui Huaheng Biotechnology
Performance |
| Timeline |
| Ping An Insurance |
| Anhui Huaheng Biotec |
Ping An and Anhui Huaheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Anhui Huaheng
The main advantage of trading using opposite Ping An and Anhui Huaheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Anhui Huaheng 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 Anhui Huaheng will offset losses from the drop in Anhui Huaheng's long position.| Ping An vs. Huayi Brothers Media | Ping An vs. Shanghai Yanpu Metal | Ping An vs. Zhengzhou Coal Mining | Ping An vs. Hengdian Entertainment Co |
| Anhui Huaheng vs. Dongfeng Automobile Co | Anhui Huaheng vs. Chongqing Changan Automobile | Anhui Huaheng vs. Songz Automobile Air | Anhui Huaheng vs. Sinomach Automobile 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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