Correlation Between Ping An and Shandong Gold
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By analyzing existing cross correlation between Ping An Insurance and Shandong Gold Mining, you can compare the effects of market volatilities on Ping An and Shandong Gold 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 Shandong Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Shandong Gold.
Diversification Opportunities for Ping An and Shandong Gold
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ping and Shandong is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Shandong Gold Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Gold 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 Shandong Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Gold Mining has no effect on the direction of Ping An i.e., Ping An and Shandong Gold go up and down completely randomly.
Pair Corralation between Ping An and Shandong Gold
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 1.61 times more return on investment than Shandong Gold. However, Ping An is 1.61 times more volatile than Shandong Gold Mining. It trades about -0.14 of its potential returns per unit of risk. Shandong Gold Mining is currently generating about -0.35 per unit of risk. If you would invest 5,763 in Ping An Insurance on August 30, 2024 and sell it today you would lose (408.00) from holding Ping An Insurance or give up 7.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Shandong Gold Mining
Performance |
| Timeline |
| Ping An Insurance |
| Shandong Gold Mining |
Ping An and Shandong Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Shandong Gold
The main advantage of trading using opposite Ping An and Shandong Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Shandong Gold 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 Shandong Gold will offset losses from the drop in Shandong Gold's long position.| Ping An vs. Kweichow Moutai Co | Ping An vs. Contemporary Amperex Technology | Ping An vs. G bits Network Technology | Ping An vs. BYD Co Ltd |
| Shandong Gold vs. Dongguan Aohai Technology | Shandong Gold vs. Jiujiang Shanshui Technology | Shandong Gold vs. Guangzhou KingTeller Technology | Shandong Gold vs. GigaDevice SemiconductorBeiji |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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