Correlation Between Ping An and China Union
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By analyzing existing cross correlation between Ping An Insurance and China Union Holdings, you can compare the effects of market volatilities on Ping An and China Union 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 China Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and China Union.
Diversification Opportunities for Ping An and China Union
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ping and China is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and China Union Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Union Holdings 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 China Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Union Holdings has no effect on the direction of Ping An i.e., Ping An and China Union go up and down completely randomly.
Pair Corralation between Ping An and China Union
Assuming the 90 days trading horizon Ping An Insurance is expected to under-perform the China Union. But the stock apears to be less risky and, when comparing its historical volatility, Ping An Insurance is 2.17 times less risky than China Union. The stock trades about -0.15 of its potential returns per unit of risk. The China Union Holdings is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 400.00 in China Union Holdings on October 12, 2024 and sell it today you would lose (17.00) from holding China Union Holdings or give up 4.25% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Ping An Insurance vs. China Union Holdings
Performance |
Timeline |
Ping An Insurance |
China Union Holdings |
Ping An and China Union Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ping An and China Union
The main advantage of trading using opposite Ping An and China Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, China Union 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 China Union will offset losses from the drop in China Union's long position.Ping An vs. Zhongrun Resources Investment | Ping An vs. Zoje Resources Investment | Ping An vs. Hunan Investment Group | Ping An vs. Innovative Medical Management |
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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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