Correlation Between Guizhou Chanhen and Ping An
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By analyzing existing cross correlation between Guizhou Chanhen Chemical and Ping An Insurance, you can compare the effects of market volatilities on Guizhou Chanhen 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 Guizhou Chanhen with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guizhou Chanhen and Ping An.
Diversification Opportunities for Guizhou Chanhen and Ping An
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guizhou and Ping is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Guizhou Chanhen Chemical 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 Guizhou Chanhen 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 Guizhou Chanhen Chemical 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 Guizhou Chanhen i.e., Guizhou Chanhen and Ping An go up and down completely randomly.
Pair Corralation between Guizhou Chanhen and Ping An
Assuming the 90 days trading horizon Guizhou Chanhen Chemical is expected to generate 1.32 times more return on investment than Ping An. However, Guizhou Chanhen is 1.32 times more volatile than Ping An Insurance. It trades about -0.03 of its potential returns per unit of risk. Ping An Insurance is currently generating about -0.1 per unit of risk. If you would invest 2,127 in Guizhou Chanhen Chemical on August 24, 2024 and sell it today you would lose (48.00) from holding Guizhou Chanhen Chemical or give up 2.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guizhou Chanhen Chemical vs. Ping An Insurance
Performance |
| Timeline |
| Guizhou Chanhen Chemical |
| Ping An Insurance |
Guizhou Chanhen and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guizhou Chanhen and Ping An
The main advantage of trading using opposite Guizhou Chanhen and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guizhou Chanhen 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.| Guizhou Chanhen vs. Zijin Mining Group | Guizhou Chanhen vs. Wanhua Chemical Group | Guizhou Chanhen vs. Baoshan Iron Steel | Guizhou Chanhen vs. Shandong Gold Mining |
| Ping An vs. Beijing Wandong Medical | Ping An vs. Hainan Mining Co | Ping An vs. Guangzhou Haozhi Industrial | Ping An vs. Allmed Medical Products |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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