Correlation Between Ping An and Sanan Optoelectronics
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By analyzing existing cross correlation between Ping An Insurance and Sanan Optoelectronics Co, you can compare the effects of market volatilities on Ping An and Sanan Optoelectronics 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 Sanan Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Sanan Optoelectronics.
Diversification Opportunities for Ping An and Sanan Optoelectronics
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ping and Sanan is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Sanan Optoelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanan Optoelectronics 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 Sanan Optoelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanan Optoelectronics has no effect on the direction of Ping An i.e., Ping An and Sanan Optoelectronics go up and down completely randomly.
Pair Corralation between Ping An and Sanan Optoelectronics
Assuming the 90 days trading horizon Ping An is expected to generate 2.26 times less return on investment than Sanan Optoelectronics. But when comparing it to its historical volatility, Ping An Insurance is 1.08 times less risky than Sanan Optoelectronics. It trades about 0.05 of its potential returns per unit of risk. Sanan Optoelectronics Co is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,064 in Sanan Optoelectronics Co on September 26, 2024 and sell it today you would earn a total of 198.00 from holding Sanan Optoelectronics Co or generate 18.61% 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. Sanan Optoelectronics Co
Performance |
Timeline |
Ping An Insurance |
Sanan Optoelectronics |
Ping An and Sanan Optoelectronics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ping An and Sanan Optoelectronics
The main advantage of trading using opposite Ping An and Sanan Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Sanan Optoelectronics 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 Sanan Optoelectronics will offset losses from the drop in Sanan Optoelectronics' 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 |
Sanan Optoelectronics vs. Ping An Insurance | Sanan Optoelectronics vs. 37 Interactive Entertainment | Sanan Optoelectronics vs. Shanghai Construction Group | Sanan Optoelectronics vs. Duzhe Publishing Media |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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