Correlation Between QUEEN S and Ping An

Can any of the company-specific risk be diversified away by investing in both QUEEN S 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 QUEEN S and Ping An into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for QUEEN S and Ping An

-0.29

Correlation Coefficient

QUEEN S  Ping An

Very good diversification

The 3 months correlation between QUEEN and Ping is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding QUEEN S ROAD and Ping An Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ping An Insurance and QUEEN S 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 QUEEN S ROAD 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 Insurance has no effect on the direction of QUEEN S i.e., QUEEN S and Ping An go up and down completely randomly.

Pair Corralation between QUEEN S and Ping An

Assuming the 90 days horizon QUEEN S ROAD is expected to under-perform the Ping An. In addition to that, QUEEN S is 1.04 times more volatile than Ping An Insurance. It trades about -0.14 of its total potential returns per unit of risk. Ping An Insurance is currently generating about 0.01 per unit of volatility. If you would invest  568.00  in Ping An Insurance on December 26, 2024 and sell it today you would lose (4.00) from holding Ping An Insurance or give up 0.7% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	91.8%
Values	Daily Returns

QUEEN S ROAD  vs.  Ping An Insurance

QUEEN S ROAD

Risk-Adjusted Performance

Very Weak

Over the last 90 days QUEEN S ROAD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Ping An Insurance

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ping An Insurance has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Ping An is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with QUEEN S and Ping An

The main advantage of trading using opposite QUEEN S and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QUEEN S 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 QUEEN S ROAD and Ping An Insurance 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.