Correlation Between PING AN and Phoenix Group

Can any of the company-specific risk be diversified away by investing in both PING AN and Phoenix Group 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 Phoenix Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PING AN INSURANCH and Phoenix Group Holdings, you can compare the effects of market volatilities on PING AN and Phoenix Group 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 Phoenix Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of PING AN and Phoenix Group.

Diversification Opportunities for PING AN and Phoenix Group

0.55

Correlation Coefficient

PING AN  Phoenix Group

Very weak diversification

The 3 months correlation between PING and Phoenix is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding PING AN INSURANCH and Phoenix Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phoenix Group Holdings 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 INSURANCH are associated (or correlated) with Phoenix Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phoenix Group Holdings has no effect on the direction of PING AN i.e., PING AN and Phoenix Group go up and down completely randomly.

Pair Corralation between PING AN and Phoenix Group

Assuming the 90 days trading horizon PING AN INSURANCH is expected to generate 1.46 times more return on investment than Phoenix Group. However, PING AN is 1.46 times more volatile than Phoenix Group Holdings. It trades about 0.12 of its potential returns per unit of risk. Phoenix Group Holdings is currently generating about 0.09 per unit of risk. If you would invest  972.00  in PING AN INSURANCH on April 24, 2025 and sell it today you would earn a total of  158.00  from holding PING AN INSURANCH or generate 16.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

PING AN INSURANCH  vs.  Phoenix Group Holdings

PING AN INSURANCH

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in PING AN INSURANCH are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, PING AN reported solid returns over the last few months and may actually be approaching a breakup point.

Phoenix Group Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Phoenix Group Holdings are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Phoenix Group may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with PING AN and Phoenix Group

The main advantage of trading using opposite PING AN and Phoenix Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PING AN position performs unexpectedly, Phoenix Group 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 Phoenix Group will offset losses from the drop in Phoenix Group's long position.

The idea behind PING AN INSURANCH and Phoenix Group Holdings 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.