Correlation Between Ping An and Guangdong Electric
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By analyzing existing cross correlation between Ping An Insurance and Guangdong Electric Power, you can compare the effects of market volatilities on Ping An and Guangdong Electric 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 Guangdong Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Guangdong Electric.
Diversification Opportunities for Ping An and Guangdong Electric
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ping and Guangdong is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Guangdong Electric Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Electric Power 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 Guangdong Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Electric Power has no effect on the direction of Ping An i.e., Ping An and Guangdong Electric go up and down completely randomly.
Pair Corralation between Ping An and Guangdong Electric
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 1.87 times more return on investment than Guangdong Electric. However, Ping An is 1.87 times more volatile than Guangdong Electric Power. It trades about 0.02 of its potential returns per unit of risk. Guangdong Electric Power is currently generating about -0.01 per unit of risk. If you would invest 4,723 in Ping An Insurance on October 29, 2024 and sell it today you would earn a total of 363.00 from holding Ping An Insurance or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Guangdong Electric Power
Performance |
| Timeline |
| Ping An Insurance |
| Guangdong Electric Power |
Ping An and Guangdong Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Guangdong Electric
The main advantage of trading using opposite Ping An and Guangdong Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Guangdong Electric 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 Guangdong Electric will offset losses from the drop in Guangdong Electric's long position.| Ping An vs. Holitech Technology Co | Ping An vs. Peoples Insurance of | Ping An vs. Zhonghang Electronic Measuring | Ping An vs. Leyard Optoelectronic |
| Guangdong Electric vs. Guilin Seamild Foods | Guangdong Electric vs. Anji Foodstuff Co | Guangdong Electric vs. Queclink Wireless Solutions | Guangdong Electric vs. Lootom Telcovideo Network |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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