Correlation Between Ping An and TGS-NOPEC GEOPHYSIC
Can any of the company-specific risk be diversified away by investing in both Ping An and TGS-NOPEC GEOPHYSIC 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 TGS-NOPEC GEOPHYSIC 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 TGS NOPEC GEOPHYSIC, you can compare the effects of market volatilities on Ping An and TGS-NOPEC GEOPHYSIC 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 TGS-NOPEC GEOPHYSIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and TGS-NOPEC GEOPHYSIC.
Diversification Opportunities for Ping An and TGS-NOPEC GEOPHYSIC
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ping and TGS-NOPEC is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and TGS NOPEC GEOPHYSIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TGS NOPEC GEOPHYSIC 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 TGS-NOPEC GEOPHYSIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TGS NOPEC GEOPHYSIC has no effect on the direction of Ping An i.e., Ping An and TGS-NOPEC GEOPHYSIC go up and down completely randomly.
Pair Corralation between Ping An and TGS-NOPEC GEOPHYSIC
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 1.29 times more return on investment than TGS-NOPEC GEOPHYSIC. However, Ping An is 1.29 times more volatile than TGS NOPEC GEOPHYSIC. It trades about 0.11 of its potential returns per unit of risk. TGS NOPEC GEOPHYSIC is currently generating about 0.08 per unit of risk. If you would invest 205.00 in Ping An Insurance on September 2, 2024 and sell it today you would earn a total of 335.00 from holding Ping An Insurance or generate 163.41% 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. TGS NOPEC GEOPHYSIC
Performance |
| Timeline |
| Ping An Insurance |
| TGS NOPEC GEOPHYSIC |
Ping An and TGS-NOPEC GEOPHYSIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and TGS-NOPEC GEOPHYSIC
The main advantage of trading using opposite Ping An and TGS-NOPEC GEOPHYSIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, TGS-NOPEC GEOPHYSIC 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 TGS-NOPEC GEOPHYSIC will offset losses from the drop in TGS-NOPEC GEOPHYSIC's long position.| Ping An vs. SIVERS SEMICONDUCTORS AB | Ping An vs. Darden Restaurants | Ping An vs. Reliance Steel Aluminum | Ping An vs. Q2M Managementberatung AG |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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