Correlation Between Zhende Medical and Ping An
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhende Medical Co and Ping An Insurance, you can compare the effects of market volatilities on Zhende Medical 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 Zhende Medical with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhende Medical and Ping An.
Diversification Opportunities for Zhende Medical and Ping An
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhende and Ping is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Zhende Medical Co 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 Zhende Medical 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 Zhende Medical Co 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 Zhende Medical i.e., Zhende Medical and Ping An go up and down completely randomly.
Pair Corralation between Zhende Medical and Ping An
Assuming the 90 days trading horizon Zhende Medical Co is expected to under-perform the Ping An. In addition to that, Zhende Medical is 1.05 times more volatile than Ping An Insurance. It trades about -0.07 of its total potential returns per unit of risk. Ping An Insurance is currently generating about 0.03 per unit of volatility. If you would invest 4,529 in Ping An Insurance on September 3, 2024 and sell it today you would earn a total of 796.00 from holding Ping An Insurance or generate 17.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhende Medical Co vs. Ping An Insurance
Performance |
| Timeline |
| Zhende Medical |
| Ping An Insurance |
Zhende Medical and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhende Medical and Ping An
The main advantage of trading using opposite Zhende Medical and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhende Medical 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.| Zhende Medical vs. Chengdu Kanghua Biological | Zhende Medical vs. Beijing Wantai Biological | Zhende Medical vs. Suzhou Novoprotein Scientific | Zhende Medical vs. Aluminum Corp of |
| Ping An vs. Guizhou BroadcastingTV Info | Ping An vs. Pengxin International Mining | Ping An vs. Hainan Mining Co | Ping An vs. Uroica Mining Safety |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |