Correlation Between Guilin Seamild and Ping An
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By analyzing existing cross correlation between Guilin Seamild Foods and Ping An Bank, you can compare the effects of market volatilities on Guilin Seamild 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 Guilin Seamild with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guilin Seamild and Ping An.
Diversification Opportunities for Guilin Seamild and Ping An
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guilin and Ping is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Guilin Seamild Foods and Ping An Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ping An Bank and Guilin Seamild 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 Guilin Seamild Foods 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 Bank has no effect on the direction of Guilin Seamild i.e., Guilin Seamild and Ping An go up and down completely randomly.
Pair Corralation between Guilin Seamild and Ping An
Assuming the 90 days trading horizon Guilin Seamild Foods is expected to generate 1.72 times more return on investment than Ping An. However, Guilin Seamild is 1.72 times more volatile than Ping An Bank. It trades about 0.04 of its potential returns per unit of risk. Ping An Bank is currently generating about 0.07 per unit of risk. If you would invest 1,427 in Guilin Seamild Foods on September 14, 2024 and sell it today you would earn a total of 334.00 from holding Guilin Seamild Foods or generate 23.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guilin Seamild Foods vs. Ping An Bank
Performance |
| Timeline |
| Guilin Seamild Foods |
| Ping An Bank |
Guilin Seamild and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guilin Seamild and Ping An
The main advantage of trading using opposite Guilin Seamild and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guilin Seamild 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.| Guilin Seamild vs. Nanjing Putian Telecommunications | Guilin Seamild vs. Tianjin Realty Development | Guilin Seamild vs. Kangyue Technology Co | Guilin Seamild vs. Shenzhen Hifuture Electric |
| Ping An vs. Guilin Seamild Foods | Ping An vs. Lier Chemical Co | Ping An vs. Liuzhou Chemical Industry | Ping An vs. Suzhou Weizhixiang Food |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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