Correlation Between Yuexiu Transport and Ping An
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport 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 Yuexiu Transport and Ping An into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yuexiu Transport Infrastructure and Ping An Insurance, you can compare the effects of market volatilities on Yuexiu Transport 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 Yuexiu Transport with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and Ping An.
Diversification Opportunities for Yuexiu Transport and Ping An
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yuexiu and Ping is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur 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 Yuexiu Transport 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 Yuexiu Transport Infrastructure 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 Yuexiu Transport i.e., Yuexiu Transport and Ping An go up and down completely randomly.
Pair Corralation between Yuexiu Transport and Ping An
Assuming the 90 days horizon Yuexiu Transport is expected to generate 4.93 times less return on investment than Ping An. But when comparing it to its historical volatility, Yuexiu Transport Infrastructure is 12.46 times less risky than Ping An. It trades about 0.12 of its potential returns per unit of risk. Ping An Insurance is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 705.00 in Ping An Insurance on September 9, 2025 and sell it today you would earn a total of 45.00 from holding Ping An Insurance or generate 6.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Yuexiu Transport Infrastructur vs. Ping An Insurance
Performance |
| Timeline |
| Yuexiu Transport Inf |
| Ping An Insurance |
Yuexiu Transport and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and Ping An
The main advantage of trading using opposite Yuexiu Transport and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport 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.| Yuexiu Transport vs. Shenzhen Investment Holdings | Yuexiu Transport vs. Monadelphous Group Ltd | Yuexiu Transport vs. Manitou BF SA | Yuexiu Transport vs. Autohellas SA |
| Ping An vs. China Life Insurance | Ping An vs. Bank of China | Ping An vs. AIA Group Ltd | Ping An vs. Allianz SE |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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