Correlation Between FORWARD AIR and Ping An
Can any of the company-specific risk be diversified away by investing in both FORWARD AIR 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 FORWARD AIR and Ping An into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FORWARD AIR P and Ping An Insurance, you can compare the effects of market volatilities on FORWARD AIR 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 FORWARD AIR with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of FORWARD AIR and Ping An.
Diversification Opportunities for FORWARD AIR and Ping An
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between FORWARD and Ping is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding FORWARD AIR P 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 FORWARD AIR 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 FORWARD AIR P 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 FORWARD AIR i.e., FORWARD AIR and Ping An go up and down completely randomly.
Pair Corralation between FORWARD AIR and Ping An
Assuming the 90 days horizon FORWARD AIR P is expected to under-perform the Ping An. In addition to that, FORWARD AIR is 1.28 times more volatile than Ping An Insurance. It trades about -0.02 of its total potential returns per unit of risk. Ping An Insurance is currently generating about 0.12 per unit of volatility. If you would invest 201.00 in Ping An Insurance on September 14, 2024 and sell it today you would earn a total of 377.00 from holding Ping An Insurance or generate 187.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FORWARD AIR P vs. Ping An Insurance
Performance |
| Timeline |
| FORWARD AIR P |
| Ping An Insurance |
FORWARD AIR and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FORWARD AIR and Ping An
The main advantage of trading using opposite FORWARD AIR and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FORWARD AIR 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.| FORWARD AIR vs. Apple Inc | FORWARD AIR vs. Apple Inc | FORWARD AIR vs. Apple Inc | FORWARD AIR vs. Apple Inc |
| Ping An vs. Singapore Reinsurance | Ping An vs. British American Tobacco | Ping An vs. HANOVER INSURANCE | Ping An vs. Ping An Insurance |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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