Correlation Between Ping An and Huizhou Desay
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By analyzing existing cross correlation between Ping An Insurance and Huizhou Desay SV, you can compare the effects of market volatilities on Ping An and Huizhou Desay 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 Huizhou Desay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Huizhou Desay.
Diversification Opportunities for Ping An and Huizhou Desay
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ping and Huizhou is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Huizhou Desay SV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huizhou Desay SV 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 Huizhou Desay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huizhou Desay SV has no effect on the direction of Ping An i.e., Ping An and Huizhou Desay go up and down completely randomly.
Pair Corralation between Ping An and Huizhou Desay
Assuming the 90 days trading horizon Ping An is expected to generate 1.02 times less return on investment than Huizhou Desay. But when comparing it to its historical volatility, Ping An Insurance is 1.19 times less risky than Huizhou Desay. It trades about 0.11 of its potential returns per unit of risk. Huizhou Desay SV is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 9,510 in Huizhou Desay SV on September 23, 2024 and sell it today you would earn a total of 1,765 from holding Huizhou Desay SV or generate 18.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Ping An Insurance vs. Huizhou Desay SV
Performance |
Timeline |
Ping An Insurance |
Huizhou Desay SV |
Ping An and Huizhou Desay Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ping An and Huizhou Desay
The main advantage of trading using opposite Ping An and Huizhou Desay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Huizhou Desay 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 Huizhou Desay will offset losses from the drop in Huizhou Desay's long position.Ping An vs. BYD Co Ltd | Ping An vs. China Mobile Limited | Ping An vs. Agricultural Bank of | Ping An vs. Industrial and Commercial |
Huizhou Desay vs. Bank of China | Huizhou Desay vs. Kweichow Moutai Co | Huizhou Desay vs. PetroChina Co Ltd | Huizhou Desay vs. Bank of Communications |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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