Correlation Between Ping An and Guocheng Mining
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By analyzing existing cross correlation between Ping An Insurance and Guocheng Mining Co, you can compare the effects of market volatilities on Ping An and Guocheng Mining 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 Guocheng Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Guocheng Mining.
Diversification Opportunities for Ping An and Guocheng Mining
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ping and Guocheng is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Guocheng Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guocheng Mining 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 Insurance are associated (or correlated) with Guocheng Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guocheng Mining has no effect on the direction of Ping An i.e., Ping An and Guocheng Mining go up and down completely randomly.
Pair Corralation between Ping An and Guocheng Mining
Assuming the 90 days trading horizon Ping An Insurance is expected to under-perform the Guocheng Mining. But the stock apears to be less risky and, when comparing its historical volatility, Ping An Insurance is 2.62 times less risky than Guocheng Mining. The stock trades about -0.14 of its potential returns per unit of risk. The Guocheng Mining Co is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 1,223 in Guocheng Mining Co on September 12, 2024 and sell it today you would earn a total of 307.00 from holding Guocheng Mining Co or generate 25.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Ping An Insurance vs. Guocheng Mining Co
Performance |
| Timeline |
| Ping An Insurance |
| Guocheng Mining |
Ping An and Guocheng Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Guocheng Mining
The main advantage of trading using opposite Ping An and Guocheng Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Guocheng Mining 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 Guocheng Mining will offset losses from the drop in Guocheng Mining's long position.| Ping An vs. China Petroleum Chemical | Ping An vs. PetroChina Co Ltd | Ping An vs. China Mobile Limited | Ping An vs. Industrial and Commercial |
| Guocheng Mining vs. Agricultural Bank of | Guocheng Mining vs. Industrial and Commercial | Guocheng Mining vs. Bank of China | Guocheng Mining vs. PetroChina Co Ltd |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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