Correlation Between Xinhua Winshare and Ping An
Can any of the company-specific risk be diversified away by investing in both Xinhua Winshare and Ping An 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 Xinhua Winshare and Ping An into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xinhua Winshare Publishing and Ping An Insurance, you can compare the effects of market volatilities on Xinhua Winshare and Ping An 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 Xinhua Winshare with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and Ping An.
Diversification Opportunities for Xinhua Winshare and Ping An
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xinhua and Ping is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and Ping An Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ping An Insurance and Xinhua Winshare 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 Xinhua Winshare Publishing are associated (or correlated) with Ping An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ping An Insurance has no effect on the direction of Xinhua Winshare i.e., Xinhua Winshare and Ping An go up and down completely randomly.
Pair Corralation between Xinhua Winshare and Ping An
Assuming the 90 days horizon Xinhua Winshare Publishing is expected to generate 1.37 times more return on investment than Ping An. However, Xinhua Winshare is 1.37 times more volatile than Ping An Insurance. It trades about -0.07 of its potential returns per unit of risk. Ping An Insurance is currently generating about -0.24 per unit of risk. If you would invest 139.00 in Xinhua Winshare Publishing on October 20, 2024 and sell it today you would lose (5.00) from holding Xinhua Winshare Publishing or give up 3.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinhua Winshare Publishing vs. Ping An Insurance
Performance |
| Timeline |
| Xinhua Winshare Publ |
| Ping An Insurance |
Xinhua Winshare and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and Ping An
The main advantage of trading using opposite Xinhua Winshare and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare position performs unexpectedly, Ping An 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 Ping An will offset losses from the drop in Ping An's long position.| Xinhua Winshare vs. Mitsubishi Gas Chemical | Xinhua Winshare vs. TRI CHEMICAL LABORATINC | Xinhua Winshare vs. BOS BETTER ONLINE | Xinhua Winshare vs. INDO RAMA SYNTHETIC |
| Ping An vs. AIA Group Limited | Ping An vs. China Life Insurance | Ping An vs. MetLife | Ping An vs. Prudential plc |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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