Correlation Between Ping An and Shenzhen SDG
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By analyzing existing cross correlation between Ping An Insurance and Shenzhen SDG Service, you can compare the effects of market volatilities on Ping An and Shenzhen SDG 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 Shenzhen SDG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Shenzhen SDG.
Diversification Opportunities for Ping An and Shenzhen SDG
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ping and Shenzhen is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Shenzhen SDG Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen SDG Service 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 Shenzhen SDG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen SDG Service has no effect on the direction of Ping An i.e., Ping An and Shenzhen SDG go up and down completely randomly.
Pair Corralation between Ping An and Shenzhen SDG
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 0.42 times more return on investment than Shenzhen SDG. However, Ping An Insurance is 2.36 times less risky than Shenzhen SDG. It trades about 0.04 of its potential returns per unit of risk. Shenzhen SDG Service is currently generating about -0.11 per unit of risk. If you would invest 5,257 in Ping An Insurance on September 25, 2024 and sell it today you would earn a total of 53.00 from holding Ping An Insurance or generate 1.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 95.45% |
Values | Daily Returns |
Ping An Insurance vs. Shenzhen SDG Service
Performance |
Timeline |
Ping An Insurance |
Shenzhen SDG Service |
Ping An and Shenzhen SDG Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ping An and Shenzhen SDG
The main advantage of trading using opposite Ping An and Shenzhen SDG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Shenzhen SDG 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 Shenzhen SDG will offset losses from the drop in Shenzhen SDG'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 |
Shenzhen SDG vs. PetroChina Co Ltd | Shenzhen SDG vs. China Mobile Limited | Shenzhen SDG vs. CNOOC Limited | Shenzhen SDG vs. Ping An Insurance |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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