Correlation Between Ping An and Southern PublishingMedia
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ping An Insurance and Southern PublishingMedia Co, you can compare the effects of market volatilities on Ping An and Southern PublishingMedia 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 Southern PublishingMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Southern PublishingMedia.
Diversification Opportunities for Ping An and Southern PublishingMedia
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ping and Southern is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Southern PublishingMedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern PublishingMedia 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 Southern PublishingMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern PublishingMedia has no effect on the direction of Ping An i.e., Ping An and Southern PublishingMedia go up and down completely randomly.
Pair Corralation between Ping An and Southern PublishingMedia
Assuming the 90 days trading horizon Ping An is expected to generate 2.24 times less return on investment than Southern PublishingMedia. But when comparing it to its historical volatility, Ping An Insurance is 2.54 times less risky than Southern PublishingMedia. It trades about 0.04 of its potential returns per unit of risk. Southern PublishingMedia Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,444 in Southern PublishingMedia Co on September 25, 2024 and sell it today you would earn a total of 23.00 from holding Southern PublishingMedia Co or generate 1.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Ping An Insurance vs. Southern PublishingMedia Co
Performance |
Timeline |
Ping An Insurance |
Southern PublishingMedia |
Ping An and Southern PublishingMedia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ping An and Southern PublishingMedia
The main advantage of trading using opposite Ping An and Southern PublishingMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Southern PublishingMedia 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 Southern PublishingMedia will offset losses from the drop in Southern PublishingMedia'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 |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |