Correlation Between SANLAM and PING AN
Can any of the company-specific risk be diversified away by investing in both SANLAM 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 SANLAM and PING AN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SANLAM LTD RC 01 and PING AN INSURANCH, you can compare the effects of market volatilities on SANLAM 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 SANLAM with a short position of PING AN. Check out your portfolio center. Please also check ongoing floating volatility patterns of SANLAM and PING AN.
Diversification Opportunities for SANLAM and PING AN
Very weak diversification
The 3 months correlation between SANLAM and PING is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding SANLAM LTD RC 01 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 SANLAM 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 SANLAM LTD RC 01 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 SANLAM i.e., SANLAM and PING AN go up and down completely randomly.
Pair Corralation between SANLAM and PING AN
Assuming the 90 days trading horizon SANLAM LTD RC 01 is expected to generate 1.01 times more return on investment than PING AN. However, SANLAM is 1.01 times more volatile than PING AN INSURANCH. It trades about -0.08 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 875.00 in SANLAM LTD RC 01 on October 25, 2024 and sell it today you would lose (30.00) from holding SANLAM LTD RC 01 or give up 3.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SANLAM LTD RC 01 vs. PING AN INSURANCH
Performance |
| Timeline |
| SANLAM LTD RC |
| PING AN INSURANCH |
SANLAM and PING AN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SANLAM and PING AN
The main advantage of trading using opposite SANLAM and PING AN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SANLAM 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.| SANLAM vs. REINET INVESTMENTS SCA | SANLAM vs. MidCap Financial Investment | SANLAM vs. Maple Leaf Foods | SANLAM vs. PennantPark Investment |
| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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