Correlation Between Ping An and Shenzhen Centralcon
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By analyzing existing cross correlation between Ping An Insurance and Shenzhen Centralcon Investment, you can compare the effects of market volatilities on Ping An and Shenzhen Centralcon 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 Shenzhen Centralcon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Shenzhen Centralcon.
Diversification Opportunities for Ping An and Shenzhen Centralcon
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ping and Shenzhen is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Shenzhen Centralcon Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Centralcon 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 Shenzhen Centralcon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Centralcon has no effect on the direction of Ping An i.e., Ping An and Shenzhen Centralcon go up and down completely randomly.
Pair Corralation between Ping An and Shenzhen Centralcon
Assuming the 90 days trading horizon Ping An is expected to generate 2.09 times less return on investment than Shenzhen Centralcon. But when comparing it to its historical volatility, Ping An Insurance is 2.24 times less risky than Shenzhen Centralcon. It trades about 0.09 of its potential returns per unit of risk. Shenzhen Centralcon Investment is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 506.00 in Shenzhen Centralcon Investment on September 26, 2024 and sell it today you would earn a total of 22.00 from holding Shenzhen Centralcon Investment or generate 4.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Ping An Insurance vs. Shenzhen Centralcon Investment
Performance |
Timeline |
Ping An Insurance |
Shenzhen Centralcon |
Ping An and Shenzhen Centralcon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ping An and Shenzhen Centralcon
The main advantage of trading using opposite Ping An and Shenzhen Centralcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Shenzhen Centralcon 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 Shenzhen Centralcon will offset losses from the drop in Shenzhen Centralcon's long position.Ping An vs. Kweichow Moutai Co | Ping An vs. Shenzhen Mindray Bio Medical | Ping An vs. Jiangsu Pacific Quartz | Ping An vs. G bits Network Technology |
Shenzhen Centralcon vs. Western Metal Materials | Shenzhen Centralcon vs. Sunny Loan Top | Shenzhen Centralcon vs. Sinomach General Machinery | Shenzhen Centralcon vs. Sichuan Yahua Industrial |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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