Correlation Between INDIKA ENERGY and PING AN
Can any of the company-specific risk be diversified away by investing in both INDIKA ENERGY 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 INDIKA ENERGY and PING AN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INDIKA ENERGY and PING AN INSURANCH, you can compare the effects of market volatilities on INDIKA ENERGY 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 INDIKA ENERGY with a short position of PING AN. Check out your portfolio center. Please also check ongoing floating volatility patterns of INDIKA ENERGY and PING AN.
Diversification Opportunities for INDIKA ENERGY and PING AN
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INDIKA and PING is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding INDIKA ENERGY 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 INDIKA ENERGY 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 INDIKA ENERGY 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 INDIKA ENERGY i.e., INDIKA ENERGY and PING AN go up and down completely randomly.
Pair Corralation between INDIKA ENERGY and PING AN
Assuming the 90 days trading horizon INDIKA ENERGY is expected to generate 2.51 times more return on investment than PING AN. However, INDIKA ENERGY is 2.51 times more volatile than PING AN INSURANCH. It trades about 0.29 of its potential returns per unit of risk. PING AN INSURANCH is currently generating about -0.16 per unit of risk. If you would invest 7.05 in INDIKA ENERGY on October 24, 2024 and sell it today you would earn a total of 1.75 from holding INDIKA ENERGY or generate 24.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INDIKA ENERGY vs. PING AN INSURANCH
Performance |
| Timeline |
| INDIKA ENERGY |
| PING AN INSURANCH |
INDIKA ENERGY and PING AN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INDIKA ENERGY and PING AN
The main advantage of trading using opposite INDIKA ENERGY and PING AN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INDIKA ENERGY 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.| INDIKA ENERGY vs. Cass Information Systems | INDIKA ENERGY vs. UNITED RENTALS | INDIKA ENERGY vs. GRENKELEASING Dusseldorf | INDIKA ENERGY vs. DATADOT TECHNOLOGY |
| PING AN vs. SLR Investment Corp | PING AN vs. PennantPark Investment | PING AN vs. Genco Shipping Trading | PING AN vs. FIRST SAVINGS FINL |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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