Correlation Between Mango Excellent and Ping An

Can any of the company-specific risk be diversified away by investing in both Mango Excellent and Ping An at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Mango Excellent and Ping An into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Mango Excellent Media and Ping An Bank, you can compare the effects of market volatilities on Mango Excellent and Ping An 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 Mango Excellent with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mango Excellent and Ping An.

Diversification Opportunities for Mango Excellent and Ping An

0.28

Correlation Coefficient

Mango Excellent  Ping An

Modest diversification

The 3 months correlation between Mango and Ping is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Mango Excellent Media and Ping An Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ping An Bank and Mango Excellent 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 Mango Excellent Media are associated (or correlated) with Ping An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ping An Bank has no effect on the direction of Mango Excellent i.e., Mango Excellent and Ping An go up and down completely randomly.

Pair Corralation between Mango Excellent and Ping An

Assuming the 90 days trading horizon Mango Excellent Media is expected to under-perform the Ping An. In addition to that, Mango Excellent is 2.19 times more volatile than Ping An Bank. It trades about -0.05 of its total potential returns per unit of risk. Ping An Bank is currently generating about 0.03 per unit of volatility. If you would invest  1,134  in Ping An Bank on November 28, 2024 and sell it today you would earn a total of  18.00  from holding Ping An Bank or generate 1.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.28%
Values	Daily Returns

Mango Excellent Media  vs.  Ping An Bank

Mango Excellent Media

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mango Excellent Media has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Ping An Bank

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ping An Bank are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Ping An is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Mango Excellent and Ping An

The main advantage of trading using opposite Mango Excellent and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mango Excellent position performs unexpectedly, Ping An 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 Ping An will offset losses from the drop in Ping An's long position.

The idea behind Mango Excellent Media and Ping An Bank pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.