Correlation Between Ping An and Zhejiang Zanyu
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By analyzing existing cross correlation between Ping An Insurance and Zhejiang Zanyu Technology, you can compare the effects of market volatilities on Ping An and Zhejiang Zanyu 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 Zhejiang Zanyu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Zhejiang Zanyu.
Diversification Opportunities for Ping An and Zhejiang Zanyu
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ping and Zhejiang is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Zhejiang Zanyu Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Zanyu Technology 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 Zhejiang Zanyu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Zanyu Technology has no effect on the direction of Ping An i.e., Ping An and Zhejiang Zanyu go up and down completely randomly.
Pair Corralation between Ping An and Zhejiang Zanyu
Assuming the 90 days trading horizon Ping An Insurance is expected to under-perform the Zhejiang Zanyu. But the stock apears to be less risky and, when comparing its historical volatility, Ping An Insurance is 1.67 times less risky than Zhejiang Zanyu. The stock trades about -0.15 of its potential returns per unit of risk. The Zhejiang Zanyu Technology is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 911.00 in Zhejiang Zanyu Technology on October 23, 2024 and sell it today you would earn a total of 112.00 from holding Zhejiang Zanyu Technology or generate 12.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
Ping An Insurance vs. Zhejiang Zanyu Technology
Performance |
Timeline |
Ping An Insurance |
Zhejiang Zanyu Technology |
Ping An and Zhejiang Zanyu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ping An and Zhejiang Zanyu
The main advantage of trading using opposite Ping An and Zhejiang Zanyu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Zhejiang Zanyu 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 Zhejiang Zanyu will offset losses from the drop in Zhejiang Zanyu's long position.Ping An vs. Harbin Air Conditioning | Ping An vs. Western Mining Co | Ping An vs. Jointo Energy Investment | Ping An vs. Hainan Mining Co |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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