Correlation Between Superior Plus and Ping An
Can any of the company-specific risk be diversified away by investing in both Superior Plus 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 Superior Plus and Ping An into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Superior Plus Corp and Ping An Insurance, you can compare the effects of market volatilities on Superior Plus 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 Superior Plus with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and Ping An.
Diversification Opportunities for Superior Plus and Ping An
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Superior and Ping is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp 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 Superior Plus 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 Superior Plus Corp 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 Superior Plus i.e., Superior Plus and Ping An go up and down completely randomly.
Pair Corralation between Superior Plus and Ping An
Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the Ping An. But the stock apears to be less risky and, when comparing its historical volatility, Superior Plus Corp is 1.84 times less risky than Ping An. The stock trades about -0.02 of its potential returns per unit of risk. The Ping An Insurance is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 249.00 in Ping An Insurance on September 12, 2024 and sell it today you would earn a total of 341.00 from holding Ping An Insurance or generate 136.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Plus Corp vs. Ping An Insurance
Performance |
| Timeline |
| Superior Plus Corp |
| Ping An Insurance |
Superior Plus and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and Ping An
The main advantage of trading using opposite Superior Plus and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus 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.| Superior Plus vs. AIR PRODCHEMICALS | Superior Plus vs. Suntory Beverage Food | Superior Plus vs. Molson Coors Beverage | Superior Plus vs. Monster Beverage Corp |
| Ping An vs. Superior Plus Corp | Ping An vs. SIVERS SEMICONDUCTORS AB | Ping An vs. CHINA HUARONG ENERHD 50 | Ping An vs. NORDIC HALIBUT AS |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| CEOs Directory Screen CEOs from public companies around the world |