Correlation Between Sino Medical and Ping An
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By analyzing existing cross correlation between Sino Medical Sciences and Ping An Insurance, you can compare the effects of market volatilities on Sino 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 Sino Medical with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Medical and Ping An.
Diversification Opportunities for Sino Medical and Ping An
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sino and Ping is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Sino Medical Sciences 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 Sino 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 Sino Medical Sciences 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 Sino Medical i.e., Sino Medical and Ping An go up and down completely randomly.
Pair Corralation between Sino Medical and Ping An
Assuming the 90 days trading horizon Sino Medical Sciences is expected to generate 2.06 times more return on investment than Ping An. However, Sino Medical is 2.06 times more volatile than Ping An Insurance. It trades about 0.04 of its potential returns per unit of risk. Ping An Insurance is currently generating about 0.03 per unit of risk. If you would invest 681.00 in Sino Medical Sciences on September 3, 2024 and sell it today you would earn a total of 405.00 from holding Sino Medical Sciences or generate 59.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sino Medical Sciences vs. Ping An Insurance
Performance |
| Timeline |
| Sino Medical Sciences |
| Ping An Insurance |
Sino Medical and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Medical and Ping An
The main advantage of trading using opposite Sino Medical and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino 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.| Sino Medical vs. Chengdu Kanghua Biological | Sino Medical vs. Beijing Wantai Biological | Sino Medical vs. Suzhou Novoprotein Scientific | Sino 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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