Correlation Between Gem Year and Ping An
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By analyzing existing cross correlation between Gem Year Industrial Co and Ping An Insurance, you can compare the effects of market volatilities on Gem Year 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 Gem Year with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gem Year and Ping An.
Diversification Opportunities for Gem Year and Ping An
Poor diversification
The 3 months correlation between Gem and Ping is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Gem Year Industrial Co 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 Gem Year 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 Gem Year Industrial Co 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 Gem Year i.e., Gem Year and Ping An go up and down completely randomly.
Pair Corralation between Gem Year and Ping An
Assuming the 90 days trading horizon Gem Year Industrial Co is expected to generate 1.34 times more return on investment than Ping An. However, Gem Year is 1.34 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 440.00 in Gem Year Industrial Co on September 1, 2024 and sell it today you would earn a total of 4.00 from holding Gem Year Industrial Co or generate 0.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gem Year Industrial Co vs. Ping An Insurance
Performance |
| Timeline |
| Gem Year Industrial |
| Ping An Insurance |
Gem Year and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gem Year and Ping An
The main advantage of trading using opposite Gem Year and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gem Year 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.| Gem Year vs. PetroChina Co Ltd | Gem Year vs. China Mobile Limited | Gem Year vs. CNOOC Limited | Gem Year vs. Ping An Insurance |
| Ping An vs. Industrial and Commercial | Ping An vs. China Construction Bank | Ping An vs. Bank of China | Ping An vs. Agricultural Bank of |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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