Correlation Between PING AN and Wilmar International
Can any of the company-specific risk be diversified away by investing in both PING AN and Wilmar International 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 Wilmar International 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 Wilmar International Limited, you can compare the effects of market volatilities on PING AN and Wilmar International 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 Wilmar International. Check out your portfolio center. Please also check ongoing floating volatility patterns of PING AN and Wilmar International.
Diversification Opportunities for PING AN and Wilmar International
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PING and Wilmar is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding PING AN INSURANCH and Wilmar International Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wilmar International 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 Wilmar International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wilmar International has no effect on the direction of PING AN i.e., PING AN and Wilmar International go up and down completely randomly.
Pair Corralation between PING AN and Wilmar International
Assuming the 90 days trading horizon PING AN INSURANCH is expected to generate 1.03 times more return on investment than Wilmar International. However, PING AN is 1.03 times more volatile than Wilmar International Limited. It trades about 0.12 of its potential returns per unit of risk. Wilmar International Limited is currently generating about 0.01 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 Against |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
PING AN INSURANCH vs. Wilmar International Limited
Performance |
Timeline |
PING AN INSURANCH |
Wilmar International |
PING AN and Wilmar International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PING AN and Wilmar International
The main advantage of trading using opposite PING AN and Wilmar International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PING AN position performs unexpectedly, Wilmar International 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 Wilmar International will offset losses from the drop in Wilmar International's long position.PING AN vs. Grupo Carso SAB | PING AN vs. Chalice Mining Limited | PING AN vs. SIMS METAL MGT | PING AN vs. GRIFFIN MINING LTD |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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