Correlation Between Sumitomo Mitsui and Ping An
Can any of the company-specific risk be diversified away by investing in both Sumitomo Mitsui and Ping An at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Sumitomo Mitsui and Ping An into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sumitomo Mitsui Construction and Ping An Insurance, you can compare the effects of market volatilities on Sumitomo Mitsui 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 Sumitomo Mitsui with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sumitomo Mitsui and Ping An.
Diversification Opportunities for Sumitomo Mitsui and Ping An
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sumitomo and Ping is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Sumitomo Mitsui Construction 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 Sumitomo Mitsui 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 Sumitomo Mitsui Construction 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 Sumitomo Mitsui i.e., Sumitomo Mitsui and Ping An go up and down completely randomly.
Pair Corralation between Sumitomo Mitsui and Ping An
Assuming the 90 days horizon Sumitomo Mitsui Construction is expected to generate 0.81 times more return on investment than Ping An. However, Sumitomo Mitsui Construction is 1.24 times less risky than Ping An. It trades about 0.08 of its potential returns per unit of risk. Ping An Insurance is currently generating about -0.07 per unit of risk. If you would invest 248.00 in Sumitomo Mitsui Construction on November 3, 2024 and sell it today you would earn a total of 6.00 from holding Sumitomo Mitsui Construction or generate 2.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sumitomo Mitsui Construction vs. Ping An Insurance
Performance |
| Timeline |
| Sumitomo Mitsui Cons |
| Ping An Insurance |
Sumitomo Mitsui and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sumitomo Mitsui and Ping An
The main advantage of trading using opposite Sumitomo Mitsui and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sumitomo Mitsui 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.| Sumitomo Mitsui vs. Corsair Gaming | Sumitomo Mitsui vs. AIR LIQUIDE ADR | Sumitomo Mitsui vs. STEEL DYNAMICS | Sumitomo Mitsui vs. Daido Steel Co |
| Ping An vs. AIA Group Limited | Ping An vs. China Life Insurance | Ping An vs. MetLife | Ping An vs. Prudential plc |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |