Correlation Between Ping An and Qingdao Citymedia
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By analyzing existing cross correlation between Ping An Insurance and Qingdao Citymedia Co, you can compare the effects of market volatilities on Ping An and Qingdao Citymedia 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 Qingdao Citymedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Qingdao Citymedia.
Diversification Opportunities for Ping An and Qingdao Citymedia
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ping and Qingdao is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Qingdao Citymedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Citymedia 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 Qingdao Citymedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Citymedia has no effect on the direction of Ping An i.e., Ping An and Qingdao Citymedia go up and down completely randomly.
Pair Corralation between Ping An and Qingdao Citymedia
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 0.44 times more return on investment than Qingdao Citymedia. However, Ping An Insurance is 2.25 times less risky than Qingdao Citymedia. It trades about 0.04 of its potential returns per unit of risk. Qingdao Citymedia Co is currently generating about -0.01 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 | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Ping An Insurance vs. Qingdao Citymedia Co
Performance |
Timeline |
Ping An Insurance |
Qingdao Citymedia |
Ping An and Qingdao Citymedia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ping An and Qingdao Citymedia
The main advantage of trading using opposite Ping An and Qingdao Citymedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Qingdao Citymedia 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 Qingdao Citymedia will offset losses from the drop in Qingdao Citymedia'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 |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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