Correlation Between Guosheng Financial and Ping An
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By analyzing existing cross correlation between Guosheng Financial Holding and Ping An Insurance, you can compare the effects of market volatilities on Guosheng Financial 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 Guosheng Financial with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guosheng Financial and Ping An.
Diversification Opportunities for Guosheng Financial and Ping An
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guosheng and Ping is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Guosheng Financial Holding 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 Guosheng Financial 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 Guosheng Financial Holding 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 Guosheng Financial i.e., Guosheng Financial and Ping An go up and down completely randomly.
Pair Corralation between Guosheng Financial and Ping An
Assuming the 90 days trading horizon Guosheng Financial Holding is expected to generate 1.43 times more return on investment than Ping An. However, Guosheng Financial is 1.43 times more volatile than Ping An Insurance. It trades about -0.08 of its potential returns per unit of risk. Ping An Insurance is currently generating about -0.16 per unit of risk. If you would invest 1,183 in Guosheng Financial Holding on August 28, 2024 and sell it today you would lose (71.00) from holding Guosheng Financial Holding or give up 6.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guosheng Financial Holding vs. Ping An Insurance
Performance |
| Timeline |
| Guosheng Financial |
| Ping An Insurance |
Guosheng Financial and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guosheng Financial and Ping An
The main advantage of trading using opposite Guosheng Financial and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guosheng Financial 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.| Guosheng Financial vs. BeiGene | Guosheng Financial vs. Kweichow Moutai Co | Guosheng Financial vs. Beijing Roborock Technology | Guosheng Financial vs. G bits Network Technology |
| Ping An vs. Ming Yang Smart | Ping An vs. 159681 | Ping An vs. 159005 | Ping An vs. Loctek Ergonomic Technology |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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