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
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ping and Shanghai is 0.83. 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
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 0.96 times more return on investment than Shanghai Jin. However, Ping An Insurance is 1.05 times less risky than Shanghai Jin. It trades about 0.03 of its potential returns per unit of risk. Shanghai Jin Jiang is currently generating about 0.0 per unit of risk. If you would invest 4,807 in Ping An Insurance on September 26, 2024 and sell it today you would earn a total of 571.00 from holding Ping An Insurance or generate 11.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.66% |
| Values | Daily Returns |
Ping An Insurance vs. Shanghai Jin Jiang
Performance |
| Timeline |
| Ping An Insurance |
| Shanghai Jin Jiang |
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.| Ping An vs. Kweichow Moutai Co | Ping An vs. Shenzhen Mindray Bio Medical | Ping An vs. Jiangsu Pacific Quartz | Ping An vs. G bits Network Technology |
| Shanghai Jin vs. Bank of China | Shanghai Jin vs. Kweichow Moutai Co | Shanghai Jin vs. PetroChina Co Ltd | Shanghai Jin vs. Bank of Communications |
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 CEOs Directory module to screen CEOs from public companies around the world.
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