Correlation Between Ping An and Singapore Reinsurance
Can any of the company-specific risk be diversified away by investing in both Ping An and Singapore Reinsurance 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 Singapore Reinsurance 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 Singapore Reinsurance, you can compare the effects of market volatilities on Ping An and Singapore Reinsurance 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 Singapore Reinsurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Singapore Reinsurance.
Diversification Opportunities for Ping An and Singapore Reinsurance
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ping and Singapore is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Singapore Reinsurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Reinsurance 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 Singapore Reinsurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singapore Reinsurance has no effect on the direction of Ping An i.e., Ping An and Singapore Reinsurance go up and down completely randomly.
Pair Corralation between Ping An and Singapore Reinsurance
Assuming the 90 days horizon Ping An Insurance is expected to generate 1.84 times more return on investment than Singapore Reinsurance. However, Ping An is 1.84 times more volatile than Singapore Reinsurance. It trades about 0.1 of its potential returns per unit of risk. Singapore Reinsurance is currently generating about 0.07 per unit of risk. If you would invest 236.00 in Ping An Insurance on September 14, 2024 and sell it today you would earn a total of 342.00 from holding Ping An Insurance or generate 144.92% 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. Singapore Reinsurance
Performance |
| Timeline |
| Ping An Insurance |
| Singapore Reinsurance |
Ping An and Singapore Reinsurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Singapore Reinsurance
The main advantage of trading using opposite Ping An and Singapore Reinsurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Singapore Reinsurance 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 Singapore Reinsurance will offset losses from the drop in Singapore Reinsurance's long position.| Ping An vs. Singapore Reinsurance | Ping An vs. British American Tobacco | Ping An vs. HANOVER INSURANCE | Ping An vs. Ping An Insurance |
| Singapore Reinsurance vs. Apple Inc | Singapore Reinsurance vs. Apple Inc | Singapore Reinsurance vs. Apple Inc | Singapore Reinsurance vs. Apple Inc |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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