Correlation Between Suzhou Weizhixiang and Ping An
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By analyzing existing cross correlation between Suzhou Weizhixiang Food and Ping An Bank, you can compare the effects of market volatilities on Suzhou Weizhixiang 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 Suzhou Weizhixiang with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Weizhixiang and Ping An.
Diversification Opportunities for Suzhou Weizhixiang and Ping An
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Suzhou and Ping is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Weizhixiang Food and Ping An Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ping An Bank and Suzhou Weizhixiang 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 Suzhou Weizhixiang Food 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 Bank has no effect on the direction of Suzhou Weizhixiang i.e., Suzhou Weizhixiang and Ping An go up and down completely randomly.
Pair Corralation between Suzhou Weizhixiang and Ping An
Assuming the 90 days trading horizon Suzhou Weizhixiang Food is expected to under-perform the Ping An. In addition to that, Suzhou Weizhixiang is 1.79 times more volatile than Ping An Bank. It trades about -0.01 of its total potential returns per unit of risk. Ping An Bank is currently generating about 0.07 per unit of volatility. If you would invest 931.00 in Ping An Bank on September 14, 2024 and sell it today you would earn a total of 254.00 from holding Ping An Bank or generate 27.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Weizhixiang Food vs. Ping An Bank
Performance |
| Timeline |
| Suzhou Weizhixiang Food |
| Ping An Bank |
Suzhou Weizhixiang and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Weizhixiang and Ping An
The main advantage of trading using opposite Suzhou Weizhixiang and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Weizhixiang 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.| Suzhou Weizhixiang vs. Xilinmen Furniture Co | Suzhou Weizhixiang vs. Jonjee Hi tech Industrial | Suzhou Weizhixiang vs. Jiangxi Hengda Hi Tech | Suzhou Weizhixiang vs. Suofeiya Home Collection |
| Ping An vs. Guilin Seamild Foods | Ping An vs. Lier Chemical Co | Ping An vs. Liuzhou Chemical Industry | Ping An vs. Suzhou Weizhixiang Food |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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