Correlation Between Carmat SA and Ping An
Can any of the company-specific risk be diversified away by investing in both Carmat SA 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 Carmat SA and Ping An into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carmat SA and Ping An Insurance, you can compare the effects of market volatilities on Carmat SA 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 Carmat SA with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carmat SA and Ping An.
Diversification Opportunities for Carmat SA and Ping An
Pay attention - limited upside
The 3 months correlation between Carmat and Ping is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Carmat SA 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 Carmat SA 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 Carmat SA 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 Carmat SA i.e., Carmat SA and Ping An go up and down completely randomly.
Pair Corralation between Carmat SA and Ping An
Assuming the 90 days horizon Carmat SA is expected to under-perform the Ping An. In addition to that, Carmat SA is 1.61 times more volatile than Ping An Insurance. It trades about -0.05 of its total potential returns per unit of risk. Ping An Insurance is currently generating about 0.07 per unit of volatility. If you would invest 191.00 in Ping An Insurance on August 30, 2024 and sell it today you would earn a total of 349.00 from holding Ping An Insurance or generate 182.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carmat SA vs. Ping An Insurance
Performance |
| Timeline |
| Carmat SA |
| Ping An Insurance |
Carmat SA and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carmat SA and Ping An
The main advantage of trading using opposite Carmat SA and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carmat SA 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.| Carmat SA vs. G III Apparel Group | Carmat SA vs. New Residential Investment | Carmat SA vs. EAT WELL INVESTMENT | Carmat SA vs. REINET INVESTMENTS SCA |
| Ping An vs. Apple Inc | Ping An vs. Apple Inc | Ping An vs. Superior Plus Corp | Ping An vs. SIVERS SEMICONDUCTORS AB |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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