Correlation Between CHINA PACINGRGDR5 and PING AN
Can any of the company-specific risk be diversified away by investing in both CHINA PACINGRGDR5 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 CHINA PACINGRGDR5 and PING AN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHINA PACINGRGDR5 YC1 and PING AN INSURANCH, you can compare the effects of market volatilities on CHINA PACINGRGDR5 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 CHINA PACINGRGDR5 with a short position of PING AN. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHINA PACINGRGDR5 and PING AN.
Diversification Opportunities for CHINA PACINGRGDR5 and PING AN
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CHINA and PING is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding CHINA PACINGRGDR5 YC1 and PING AN INSURANCH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PING AN INSURANCH and CHINA PACINGRGDR5 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 CHINA PACINGRGDR5 YC1 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 INSURANCH has no effect on the direction of CHINA PACINGRGDR5 i.e., CHINA PACINGRGDR5 and PING AN go up and down completely randomly.
Pair Corralation between CHINA PACINGRGDR5 and PING AN
Assuming the 90 days trading horizon CHINA PACINGRGDR5 YC1 is expected to generate 1.07 times more return on investment than PING AN. However, CHINA PACINGRGDR5 is 1.07 times more volatile than PING AN INSURANCH. It trades about -0.16 of its potential returns per unit of risk. PING AN INSURANCH is currently generating about -0.29 per unit of risk. If you would invest 2,160 in CHINA PACINGRGDR5 YC1 on October 25, 2024 and sell it today you would lose (140.00) from holding CHINA PACINGRGDR5 YC1 or give up 6.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CHINA PACINGRGDR5 YC1 vs. PING AN INSURANCH
Performance |
| Timeline |
| CHINA PACINGRGDR5 YC1 |
| PING AN INSURANCH |
CHINA PACINGRGDR5 and PING AN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHINA PACINGRGDR5 and PING AN
The main advantage of trading using opposite CHINA PACINGRGDR5 and PING AN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHINA PACINGRGDR5 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.| CHINA PACINGRGDR5 vs. Siemens Healthineers AG | CHINA PACINGRGDR5 vs. WESANA HEALTH HOLD | CHINA PACINGRGDR5 vs. Molina Healthcare | CHINA PACINGRGDR5 vs. SHIP HEALTHCARE HLDGINC |
| PING AN vs. JSC Halyk bank | PING AN vs. T MOBILE US | PING AN vs. Erste Group Bank | PING AN vs. Ameriprise Financial |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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