Correlation Between Ping An and Asahi Group
Can any of the company-specific risk be diversified away by investing in both Ping An and Asahi Group 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 Asahi Group 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 Asahi Group Holdings, you can compare the effects of market volatilities on Ping An and Asahi Group 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 Asahi Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Asahi Group.
Diversification Opportunities for Ping An and Asahi Group
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ping and Asahi is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Asahi Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asahi Group 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 Asahi Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asahi Group Holdings has no effect on the direction of Ping An i.e., Ping An and Asahi Group go up and down completely randomly.
Pair Corralation between Ping An and Asahi Group
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 2.42 times more return on investment than Asahi Group. However, Ping An is 2.42 times more volatile than Asahi Group Holdings. It trades about 0.11 of its potential returns per unit of risk. Asahi Group Holdings is currently generating about -0.02 per unit of risk. If you would invest 203.00 in Ping An Insurance on September 3, 2024 and sell it today you would earn a total of 337.00 from holding Ping An Insurance or generate 166.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Asahi Group Holdings
Performance |
| Timeline |
| Ping An Insurance |
| Asahi Group Holdings |
Ping An and Asahi Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Asahi Group
The main advantage of trading using opposite Ping An and Asahi Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Asahi Group 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 Asahi Group will offset losses from the drop in Asahi Group's 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 |
| Asahi Group vs. REVO INSURANCE SPA | Asahi Group vs. Zurich Insurance Group | Asahi Group vs. Direct Line Insurance | Asahi Group vs. Ping An Insurance |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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