Correlation Between Ping An and CIFI Holdings
Can any of the company-specific risk be diversified away by investing in both Ping An and CIFI Holdings 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 CIFI Holdings 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 CIFI Holdings Co, you can compare the effects of market volatilities on Ping An and CIFI Holdings 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 CIFI Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and CIFI Holdings.
Diversification Opportunities for Ping An and CIFI Holdings
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ping and CIFI is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and CIFI Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIFI Holdings 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 CIFI Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIFI Holdings has no effect on the direction of Ping An i.e., Ping An and CIFI Holdings go up and down completely randomly.
Pair Corralation between Ping An and CIFI Holdings
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 0.57 times more return on investment than CIFI Holdings. However, Ping An Insurance is 1.74 times less risky than CIFI Holdings. It trades about 0.14 of its potential returns per unit of risk. CIFI Holdings Co is currently generating about 0.02 per unit of risk. If you would invest 244.00 in Ping An Insurance on September 3, 2024 and sell it today you would earn a total of 300.00 from holding Ping An Insurance or generate 122.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. CIFI Holdings Co
Performance |
| Timeline |
| Ping An Insurance |
| CIFI Holdings |
Ping An and CIFI Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and CIFI Holdings
The main advantage of trading using opposite Ping An and CIFI Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, CIFI Holdings 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 CIFI Holdings will offset losses from the drop in CIFI Holdings' long position.| Ping An vs. LION ONE METALS | Ping An vs. IDP EDUCATION LTD | Ping An vs. DEVRY EDUCATION GRP | Ping An vs. Perseus Mining Limited |
| CIFI Holdings vs. HF SINCLAIR P | CIFI Holdings vs. Japan Post Insurance | CIFI Holdings vs. Wizz Air Holdings | CIFI Holdings vs. Norwegian Air Shuttle |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |