Correlation Between Ping An and Shanghai Jin
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By analyzing existing cross correlation between Ping An Insurance and Shanghai Jin Jiang, you can compare the effects of market volatilities on Ping An and Shanghai Jin 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 Shanghai Jin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Shanghai Jin.
Diversification Opportunities for Ping An and Shanghai Jin
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ping and Shanghai is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Shanghai Jin Jiang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jin Jiang 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 Shanghai Jin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jin Jiang has no effect on the direction of Ping An i.e., Ping An and Shanghai Jin go up and down completely randomly.
Pair Corralation between Ping An and Shanghai Jin
If you would invest (100.00) in Shanghai Jin Jiang on November 7, 2024 and sell it today you would earn a total of 100.00 from holding Shanghai Jin Jiang or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Ping An Insurance vs. Shanghai Jin Jiang
Performance |
| Timeline |
| Ping An Insurance |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Shanghai Jin Jiang |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ping An and Shanghai Jin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Shanghai Jin
The main advantage of trading using opposite Ping An and Shanghai Jin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Shanghai Jin 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 Shanghai Jin will offset losses from the drop in Shanghai Jin's long position.The idea behind Ping An Insurance and Shanghai Jin Jiang pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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