Correlation Between PING AN and Easterly Government

Can any of the company-specific risk be diversified away by investing in both PING AN and Easterly Government 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 Easterly Government 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 Easterly Government Properties, you can compare the effects of market volatilities on PING AN and Easterly Government 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 Easterly Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of PING AN and Easterly Government.

Diversification Opportunities for PING AN and Easterly Government

0.61

Correlation Coefficient

PING AN  Easterly Government

Poor diversification

The 3 months correlation between PING and Easterly is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding PING AN INSURANCH and Easterly Government Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Easterly Government 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 Easterly Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Easterly Government has no effect on the direction of PING AN i.e., PING AN and Easterly Government go up and down completely randomly.

Pair Corralation between PING AN and Easterly Government

Assuming the 90 days trading horizon PING AN INSURANCH is expected to generate 1.26 times more return on investment than Easterly Government. However, PING AN is 1.26 times more volatile than Easterly Government Properties. It trades about 0.12 of its potential returns per unit of risk. Easterly Government Properties is currently generating about 0.1 per unit of risk. If you would invest  972.00  in PING AN INSURANCH on April 23, 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	Significant
Accuracy	100.0%
Values	Daily Returns

PING AN INSURANCH  vs.  Easterly Government Properties

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.

Easterly Government

Risk-Adjusted Performance

OK

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

Pair Trading with PING AN and Easterly Government

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

The idea behind PING AN INSURANCH and Easterly Government Properties 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.