Correlation Between CNO Financial and Ping An
Can any of the company-specific risk be diversified away by investing in both CNO Financial 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 CNO Financial and Ping An into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CNO Financial Group and Ping An Insurance, you can compare the effects of market volatilities on CNO Financial 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 CNO Financial with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNO Financial and Ping An.
Diversification Opportunities for CNO Financial and Ping An
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CNO and Ping is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding CNO Financial Group 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 CNO Financial 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 CNO Financial Group 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 CNO Financial i.e., CNO Financial and Ping An go up and down completely randomly.
Pair Corralation between CNO Financial and Ping An
Considering the 90-day investment horizon CNO Financial Group is expected to generate 0.63 times more return on investment than Ping An. However, CNO Financial Group is 1.6 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 0.02 per unit of risk. If you would invest 2,160 in CNO Financial Group on August 28, 2024 and sell it today you would earn a total of 1,873 from holding CNO Financial Group or generate 86.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNO Financial Group vs. Ping An Insurance
Performance |
| Timeline |
| CNO Financial Group |
| Ping An Insurance |
CNO Financial and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNO Financial and Ping An
The main advantage of trading using opposite CNO Financial and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNO Financial 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.| CNO Financial vs. MetLife Preferred Stock | CNO Financial vs. FG Annuities Life | CNO Financial vs. Prudential Public Limited | CNO Financial vs. MetLife Preferred Stock |
| Ping An vs. AIA Group | Ping An vs. Jackson Financial | Ping An vs. Sanlam Ltd PK | Ping An vs. CNO Financial Group |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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