Correlation Between Ping An and CNO Financial
Can any of the company-specific risk be diversified away by investing in both Ping An and CNO Financial 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 Ping An and CNO Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ping An Insurance and CNO Financial Group, you can compare the effects of market volatilities on Ping An and CNO Financial 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 Ping An with a short position of CNO Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and CNO Financial.
Diversification Opportunities for Ping An and CNO Financial
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ping and CNO is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and CNO Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNO Financial Group and Ping An 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 Ping An Insurance are associated (or correlated) with CNO Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNO Financial Group has no effect on the direction of Ping An i.e., Ping An and CNO Financial go up and down completely randomly.
Pair Corralation between Ping An and CNO Financial
Assuming the 90 days horizon Ping An Insurance is expected to under-perform the CNO Financial. But the pink sheet apears to be less risky and, when comparing its historical volatility, Ping An Insurance is 2.11 times less risky than CNO Financial. The pink sheet trades about -0.38 of its potential returns per unit of risk. The CNO Financial Group is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 3,475 in CNO Financial Group on August 27, 2024 and sell it today you would earn a total of 558.00 from holding CNO Financial Group or generate 16.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. CNO Financial Group
Performance |
| Timeline |
| Ping An Insurance |
| CNO Financial Group |
Ping An and CNO Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and CNO Financial
The main advantage of trading using opposite Ping An and CNO Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, CNO Financial 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 CNO Financial will offset losses from the drop in CNO Financial's long position.| Ping An vs. CNO Financial Group | Ping An vs. Genworth Financial | Ping An vs. MetLife Preferred Stock | Ping An vs. Prudential Public Limited |
| CNO Financial vs. MetLife Preferred Stock | CNO Financial vs. FG Annuities Life | CNO Financial vs. Prudential Public Limited | CNO Financial vs. MetLife Preferred Stock |
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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