Correlation Between Ping An and Guangzhou KingTeller
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ping An Insurance and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on Ping An and Guangzhou KingTeller 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 Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Guangzhou KingTeller.
Diversification Opportunities for Ping An and Guangzhou KingTeller
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ping and Guangzhou is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller 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 Guangzhou KingTeller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou KingTeller has no effect on the direction of Ping An i.e., Ping An and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between Ping An and Guangzhou KingTeller
Assuming the 90 days trading horizon Ping An is expected to generate 13.23 times less return on investment than Guangzhou KingTeller. But when comparing it to its historical volatility, Ping An Insurance is 3.68 times less risky than Guangzhou KingTeller. It trades about 0.06 of its potential returns per unit of risk. Guangzhou KingTeller Technology is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 401.00 in Guangzhou KingTeller Technology on November 7, 2024 and sell it today you would earn a total of 57.00 from holding Guangzhou KingTeller Technology or generate 14.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| Ping An Insurance |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Guangzhou KingTeller |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ping An and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Guangzhou KingTeller
The main advantage of trading using opposite Ping An and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Guangzhou KingTeller 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 Guangzhou KingTeller will offset losses from the drop in Guangzhou KingTeller's long position.The idea behind Ping An Insurance and Guangzhou KingTeller Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |