Correlation Between Ping An and Chengdu Spaceon
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By analyzing existing cross correlation between Ping An Insurance and Chengdu Spaceon Electronics, you can compare the effects of market volatilities on Ping An and Chengdu Spaceon 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 Chengdu Spaceon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Chengdu Spaceon.
Diversification Opportunities for Ping An and Chengdu Spaceon
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ping and Chengdu is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Chengdu Spaceon Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Spaceon Elec 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 Chengdu Spaceon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Spaceon Elec has no effect on the direction of Ping An i.e., Ping An and Chengdu Spaceon go up and down completely randomly.
Pair Corralation between Ping An and Chengdu Spaceon
Assuming the 90 days trading horizon Ping An is expected to generate 1.26 times less return on investment than Chengdu Spaceon. But when comparing it to its historical volatility, Ping An Insurance is 1.14 times less risky than Chengdu Spaceon. It trades about 0.17 of its potential returns per unit of risk. Chengdu Spaceon Electronics is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,285 in Chengdu Spaceon Electronics on September 12, 2024 and sell it today you would earn a total of 511.00 from holding Chengdu Spaceon Electronics or generate 39.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Ping An Insurance vs. Chengdu Spaceon Electronics
Performance |
Timeline |
Ping An Insurance |
Chengdu Spaceon Elec |
Ping An and Chengdu Spaceon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ping An and Chengdu Spaceon
The main advantage of trading using opposite Ping An and Chengdu Spaceon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Chengdu Spaceon 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 Chengdu Spaceon will offset losses from the drop in Chengdu Spaceon's long position.Ping An vs. China Petroleum Chemical | Ping An vs. PetroChina Co Ltd | Ping An vs. China Mobile Limited | Ping An vs. Industrial and Commercial |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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