Correlation Between Ping An and TELE2 AB
Can any of the company-specific risk be diversified away by investing in both Ping An and TELE2 AB 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 TELE2 AB 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 TELE2 AB UNSPADR12, you can compare the effects of market volatilities on Ping An and TELE2 AB 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 TELE2 AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and TELE2 AB.
Diversification Opportunities for Ping An and TELE2 AB
Very good diversification
The 3 months correlation between Ping and TELE2 is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and TELE2 AB UNSPADR12 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TELE2 AB UNSPADR12 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 TELE2 AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TELE2 AB UNSPADR12 has no effect on the direction of Ping An i.e., Ping An and TELE2 AB go up and down completely randomly.
Pair Corralation between Ping An and TELE2 AB
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 2.62 times more return on investment than TELE2 AB. However, Ping An is 2.62 times more volatile than TELE2 AB UNSPADR12. It trades about 0.18 of its potential returns per unit of risk. TELE2 AB UNSPADR12 is currently generating about 0.01 per unit of risk. If you would invest 328.00 in Ping An Insurance on September 3, 2024 and sell it today you would earn a total of 212.00 from holding Ping An Insurance or generate 64.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. TELE2 AB UNSPADR12
Performance |
| Timeline |
| Ping An Insurance |
| TELE2 AB UNSPADR12 |
Ping An and TELE2 AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and TELE2 AB
The main advantage of trading using opposite Ping An and TELE2 AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, TELE2 AB 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 TELE2 AB will offset losses from the drop in TELE2 AB'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 |
| TELE2 AB vs. Spirent Communications plc | TELE2 AB vs. Entravision Communications | TELE2 AB vs. MAROC TELECOM | TELE2 AB vs. WillScot Mobile Mini |
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 CEOs Directory module to screen CEOs from public companies around the world.
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