Correlation Between Ping An and Tianjin Realty
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By analyzing existing cross correlation between Ping An Insurance and Tianjin Realty Development, you can compare the effects of market volatilities on Ping An and Tianjin Realty 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 Tianjin Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Tianjin Realty.
Diversification Opportunities for Ping An and Tianjin Realty
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ping and Tianjin is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Tianjin Realty Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Realty Devel 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 Tianjin Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Realty Devel has no effect on the direction of Ping An i.e., Ping An and Tianjin Realty go up and down completely randomly.
Pair Corralation between Ping An and Tianjin Realty
Assuming the 90 days trading horizon Ping An is expected to generate 63.38 times less return on investment than Tianjin Realty. But when comparing it to its historical volatility, Ping An Insurance is 3.51 times less risky than Tianjin Realty. It trades about 0.01 of its potential returns per unit of risk. Tianjin Realty Development is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 238.00 in Tianjin Realty Development on September 24, 2024 and sell it today you would earn a total of 34.00 from holding Tianjin Realty Development or generate 14.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.24% |
Values | Daily Returns |
Ping An Insurance vs. Tianjin Realty Development
Performance |
Timeline |
Ping An Insurance |
Tianjin Realty Devel |
Ping An and Tianjin Realty Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ping An and Tianjin Realty
The main advantage of trading using opposite Ping An and Tianjin Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Tianjin Realty 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 Tianjin Realty will offset losses from the drop in Tianjin Realty'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 |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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