Correlation Between Midwest Holding and Ping An
Can any of the company-specific risk be diversified away by investing in both Midwest Holding 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 Midwest Holding and Ping An into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Midwest Holding and Ping An Insurance, you can compare the effects of market volatilities on Midwest Holding 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 Midwest Holding with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Midwest Holding and Ping An.
Diversification Opportunities for Midwest Holding and Ping An
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Midwest and Ping is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Midwest Holding 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 Midwest Holding 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 Midwest Holding 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 Midwest Holding i.e., Midwest Holding and Ping An go up and down completely randomly.
Pair Corralation between Midwest Holding and Ping An
If you would invest 2,651 in Midwest Holding on October 22, 2024 and sell it today you would earn a total of 0.00 from holding Midwest Holding or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Midwest Holding vs. Ping An Insurance
Performance |
| Timeline |
| Midwest Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ping An Insurance |
Midwest Holding and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Midwest Holding and Ping An
The main advantage of trading using opposite Midwest Holding and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Midwest Holding 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.| Midwest Holding vs. Brighthouse Financial | Midwest Holding vs. Brighthouse Financial | Midwest Holding vs. FG Annuities Life | Midwest Holding vs. CNO Financial Group |
| Ping An vs. AIA Group Ltd | Ping An vs. China Life Insurance | Ping An vs. Sanlam Ltd PK | Ping An vs. Lincoln National |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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