Correlation Between Bank of Communications and Ping An
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of Communications and Ping An Insurance, you can compare the effects of market volatilities on Bank of Communications and Ping An 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 Bank of Communications with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Communications and Ping An.
Diversification Opportunities for Bank of Communications and Ping An
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Ping is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Communications and Ping An Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ping An Insurance and Bank of Communications 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 Bank of Communications are associated (or correlated) with Ping An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ping An Insurance has no effect on the direction of Bank of Communications i.e., Bank of Communications and Ping An go up and down completely randomly.
Pair Corralation between Bank of Communications and Ping An
Assuming the 90 days trading horizon Bank of Communications is expected to generate 0.75 times more return on investment than Ping An. However, Bank of Communications is 1.33 times less risky than Ping An. It trades about 0.08 of its potential returns per unit of risk. Ping An Insurance is currently generating about 0.02 per unit of risk. If you would invest 457.00 in Bank of Communications on November 2, 2024 and sell it today you would earn a total of 268.00 from holding Bank of Communications or generate 58.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Communications vs. Ping An Insurance
Performance |
| Timeline |
| Bank of Communications |
| Ping An Insurance |
Bank of Communications and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Communications and Ping An
The main advantage of trading using opposite Bank of Communications and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Communications position performs unexpectedly, Ping An 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 Ping An will offset losses from the drop in Ping An's long position.The idea behind Bank of Communications and Ping An Insurance 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.
| Ping An vs. Zijin Mining Group | Ping An vs. Jinhui Mining Co | Ping An vs. Huaibei Mining Holdings | Ping An vs. JCHX Mining Management |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |