Correlation Between Ping An and Dave Busters
Can any of the company-specific risk be diversified away by investing in both Ping An and Dave Busters 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 Dave Busters 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 Dave Busters Entertainment, you can compare the effects of market volatilities on Ping An and Dave Busters 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 Dave Busters. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Dave Busters.
Diversification Opportunities for Ping An and Dave Busters
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ping and Dave is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Dave Busters Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dave Busters Enterta 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 Dave Busters. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dave Busters Enterta has no effect on the direction of Ping An i.e., Ping An and Dave Busters go up and down completely randomly.
Pair Corralation between Ping An and Dave Busters
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 1.28 times more return on investment than Dave Busters. However, Ping An is 1.28 times more volatile than Dave Busters Entertainment. It trades about 0.18 of its potential returns per unit of risk. Dave Busters Entertainment is currently generating about 0.11 per unit of risk. If you would invest 334.00 in Ping An Insurance on August 31, 2024 and sell it today you would earn a total of 206.00 from holding Ping An Insurance or generate 61.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Dave Busters Entertainment
Performance |
| Timeline |
| Ping An Insurance |
| Dave Busters Enterta |
Ping An and Dave Busters Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Dave Busters
The main advantage of trading using opposite Ping An and Dave Busters positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Dave Busters 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 Dave Busters will offset losses from the drop in Dave Busters' long position.| Ping An vs. Southwest Airlines Co | Ping An vs. Selective Insurance Group | Ping An vs. MOVIE GAMES SA | Ping An vs. Reinsurance Group of |
| Dave Busters vs. Pick n Pay | Dave Busters vs. FUYO GENERAL LEASE | Dave Busters vs. MOLSON RS BEVERAGE | Dave Busters vs. MARKET VECTR RETAIL |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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