Correlation Between Industrial and Ping An
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By analyzing existing cross correlation between Industrial and Commercial and Ping An Insurance, you can compare the effects of market volatilities on Industrial 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 Industrial with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Ping An.
Diversification Opportunities for Industrial and Ping An
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Industrial and Ping is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial 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 Industrial 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 Industrial and Commercial 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 Industrial i.e., Industrial and Ping An go up and down completely randomly.
Pair Corralation between Industrial and Ping An
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 1.11 times more return on investment than Ping An. However, Industrial is 1.11 times more volatile than Ping An Insurance. It trades about 0.05 of its potential returns per unit of risk. Ping An Insurance is currently generating about -0.24 per unit of risk. If you would invest 653.00 in Industrial and Commercial on October 21, 2024 and sell it today you would earn a total of 8.00 from holding Industrial and Commercial or generate 1.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Ping An Insurance
Performance |
| Timeline |
| Industrial and Commercial |
| Ping An Insurance |
Industrial and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Ping An
The main advantage of trading using opposite Industrial and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial 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.| Industrial vs. Shenzhen Silver Basis | Industrial vs. Dezhan HealthCare Co | Industrial vs. De Rucci Healthy | Industrial vs. Humanwell Healthcare Group |
| Ping An vs. Zhongshan Broad Ocean Motor | Ping An vs. Jilin Chemical Fibre | Ping An vs. Shenyang Chemical Industry | Ping An vs. RoadMain T 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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