Correlation Between Aflac Incorporated and PING AN
Can any of the company-specific risk be diversified away by investing in both Aflac Incorporated 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 Aflac Incorporated and PING AN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aflac Incorporated and PING AN INSURANCH, you can compare the effects of market volatilities on Aflac Incorporated 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 Aflac Incorporated with a short position of PING AN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aflac Incorporated and PING AN.
Diversification Opportunities for Aflac Incorporated and PING AN
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aflac and PING is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Aflac Incorporated 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 Aflac Incorporated 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 Aflac Incorporated 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 Aflac Incorporated i.e., Aflac Incorporated and PING AN go up and down completely randomly.
Pair Corralation between Aflac Incorporated and PING AN
Assuming the 90 days horizon Aflac Incorporated is expected to generate 0.52 times more return on investment than PING AN. However, Aflac Incorporated is 1.91 times less risky than PING AN. It trades about 0.13 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 9,950 in Aflac Incorporated on October 25, 2024 and sell it today you would earn a total of 235.00 from holding Aflac Incorporated or generate 2.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Aflac Incorporated vs. PING AN INSURANCH
Performance |
| Timeline |
| Aflac Incorporated |
| PING AN INSURANCH |
Aflac Incorporated and PING AN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aflac Incorporated and PING AN
The main advantage of trading using opposite Aflac Incorporated and PING AN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aflac Incorporated 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.| Aflac Incorporated vs. The Yokohama Rubber | Aflac Incorporated vs. Tower One Wireless | Aflac Incorporated vs. GOODYEAR T RUBBER | Aflac Incorporated vs. VULCAN MATERIALS |
| 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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