Correlation Between Ping An and Zijin Mining
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By analyzing existing cross correlation between Ping An Insurance and Zijin Mining Group, you can compare the effects of market volatilities on Ping An and Zijin 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 Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Zijin Mining.
Diversification Opportunities for Ping An and Zijin Mining
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ping and Zijin is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Zijin Mining Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zijin Mining Group 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 Zijin Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zijin Mining Group has no effect on the direction of Ping An i.e., Ping An and Zijin Mining go up and down completely randomly.
Pair Corralation between Ping An and Zijin Mining
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 1.22 times more return on investment than Zijin Mining. However, Ping An is 1.22 times more volatile than Zijin Mining Group. It trades about -0.18 of its potential returns per unit of risk. Zijin Mining Group is currently generating about -0.26 per unit of risk. If you would invest 5,750 in Ping An Insurance on August 27, 2024 and sell it today you would lose (493.00) from holding Ping An Insurance or give up 8.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Zijin Mining Group
Performance |
| Timeline |
| Ping An Insurance |
| Zijin Mining Group |
Ping An and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Zijin Mining
The main advantage of trading using opposite Ping An and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Zijin 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 Zijin Mining will offset losses from the drop in Zijin Mining's long position.| Ping An vs. Ming Yang Smart | Ping An vs. 159681 | Ping An vs. 159005 | Ping An vs. Loctek Ergonomic Technology |
| Zijin Mining vs. Sichuan Fulin Transportation | Zijin Mining vs. Jiangsu Yanghe Brewery | Zijin Mining vs. Broadex Technologies Co | Zijin Mining vs. Haima Automobile Group |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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