Correlation Between Evolent Health and Ping An
Can any of the company-specific risk be diversified away by investing in both Evolent Health 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 Evolent Health and Ping An into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolent Health and Ping An Healthcare, you can compare the effects of market volatilities on Evolent Health 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 Evolent Health with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolent Health and Ping An.
Diversification Opportunities for Evolent Health and Ping An
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Evolent and Ping is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Evolent Health and Ping An Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ping An Healthcare and Evolent Health 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 Evolent Health 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 Healthcare has no effect on the direction of Evolent Health i.e., Evolent Health and Ping An go up and down completely randomly.
Pair Corralation between Evolent Health and Ping An
Assuming the 90 days horizon Evolent Health is expected to under-perform the Ping An. In addition to that, Evolent Health is 1.15 times more volatile than Ping An Healthcare. It trades about -0.03 of its total potential returns per unit of risk. Ping An Healthcare is currently generating about 0.0 per unit of volatility. If you would invest 234.00 in Ping An Healthcare on September 1, 2024 and sell it today you would lose (59.00) from holding Ping An Healthcare or give up 25.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.78% |
| Values | Daily Returns |
Evolent Health vs. Ping An Healthcare
Performance |
| Timeline |
| Evolent Health |
| Ping An Healthcare |
Evolent Health and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolent Health and Ping An
The main advantage of trading using opposite Evolent Health and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolent Health 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.| Evolent Health vs. COSMOSTEEL HLDGS | Evolent Health vs. CECO ENVIRONMENTAL | Evolent Health vs. GFL ENVIRONM | Evolent Health vs. MAVEN WIRELESS SWEDEN |
| Ping An vs. Ribbon Communications | Ping An vs. Gamma Communications plc | Ping An vs. Ryanair Holdings plc | Ping An vs. Chunghwa Telecom 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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