Correlation Between Ping An and RYOHIN UNSPADR/1

Can any of the company-specific risk be diversified away by investing in both Ping An and RYOHIN UNSPADR/1 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 Ping An and RYOHIN UNSPADR/1 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ping An Healthcare and RYOHIN UNSPADR1, you can compare the effects of market volatilities on Ping An and RYOHIN UNSPADR/1 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 RYOHIN UNSPADR/1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and RYOHIN UNSPADR/1.

Diversification Opportunities for Ping An and RYOHIN UNSPADR/1

0.65

Correlation Coefficient

Ping An  RYOHIN UNSPADR/1

Poor diversification

The 3 months correlation between Ping and RYOHIN is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Healthcare and RYOHIN UNSPADR1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RYOHIN UNSPADR/1 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 Healthcare are associated (or correlated) with RYOHIN UNSPADR/1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RYOHIN UNSPADR/1 has no effect on the direction of Ping An i.e., Ping An and RYOHIN UNSPADR/1 go up and down completely randomly.

Pair Corralation between Ping An and RYOHIN UNSPADR/1

Assuming the 90 days horizon Ping An is expected to generate 1.28 times less return on investment than RYOHIN UNSPADR/1. In addition to that, Ping An is 2.04 times more volatile than RYOHIN UNSPADR1. It trades about 0.11 of its total potential returns per unit of risk. RYOHIN UNSPADR1 is currently generating about 0.28 per unit of volatility. If you would invest  2,740  in RYOHIN UNSPADR1 on April 24, 2025 and sell it today you would earn a total of  1,140  from holding RYOHIN UNSPADR1 or generate 41.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

Ping An Healthcare  vs.  RYOHIN UNSPADR1

Ping An Healthcare

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ping An Healthcare are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Ping An reported solid returns over the last few months and may actually be approaching a breakup point.

RYOHIN UNSPADR/1

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in RYOHIN UNSPADR1 are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain forward-looking signals, RYOHIN UNSPADR/1 reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ping An and RYOHIN UNSPADR/1

The main advantage of trading using opposite Ping An and RYOHIN UNSPADR/1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, RYOHIN UNSPADR/1 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 RYOHIN UNSPADR/1 will offset losses from the drop in RYOHIN UNSPADR/1's long position.

The idea behind Ping An Healthcare and RYOHIN UNSPADR1 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.