Correlation Between Shanghai Yanpu and Ping An
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By analyzing existing cross correlation between Shanghai Yanpu Metal and Ping An Insurance, you can compare the effects of market volatilities on Shanghai Yanpu 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 Shanghai Yanpu with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yanpu and Ping An.
Diversification Opportunities for Shanghai Yanpu and Ping An
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shanghai and Ping is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yanpu Metal 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 Shanghai Yanpu 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 Shanghai Yanpu Metal 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 Shanghai Yanpu i.e., Shanghai Yanpu and Ping An go up and down completely randomly.
Pair Corralation between Shanghai Yanpu and Ping An
Assuming the 90 days trading horizon Shanghai Yanpu Metal is expected to generate 1.52 times more return on investment than Ping An. However, Shanghai Yanpu is 1.52 times more volatile than Ping An Insurance. It trades about -0.09 of its potential returns per unit of risk. Ping An Insurance is currently generating about -0.3 per unit of risk. If you would invest 3,980 in Shanghai Yanpu Metal on October 17, 2024 and sell it today you would lose (160.00) from holding Shanghai Yanpu Metal or give up 4.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yanpu Metal vs. Ping An Insurance
Performance |
| Timeline |
| Shanghai Yanpu Metal |
| Ping An Insurance |
Shanghai Yanpu and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yanpu and Ping An
The main advantage of trading using opposite Shanghai Yanpu and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yanpu 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.| Shanghai Yanpu vs. Impulse Qingdao Health | Shanghai Yanpu vs. Caihong Display Devices | Shanghai Yanpu vs. Fiberhome Telecommunication Technologies | Shanghai Yanpu vs. Dezhan HealthCare Co |
| Ping An vs. Huayi Brothers Media | Ping An vs. Shanghai Yanpu Metal | Ping An vs. Zhengzhou Coal Mining | Ping An vs. Hengdian Entertainment 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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