Correlation Between Ping An and Guizhou BroadcastingTV
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By analyzing existing cross correlation between Ping An Insurance and Guizhou BroadcastingTV Info, you can compare the effects of market volatilities on Ping An and Guizhou BroadcastingTV 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 Guizhou BroadcastingTV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Guizhou BroadcastingTV.
Diversification Opportunities for Ping An and Guizhou BroadcastingTV
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ping and Guizhou is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Guizhou BroadcastingTV Info in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guizhou BroadcastingTV 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 Guizhou BroadcastingTV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guizhou BroadcastingTV has no effect on the direction of Ping An i.e., Ping An and Guizhou BroadcastingTV go up and down completely randomly.
Pair Corralation between Ping An and Guizhou BroadcastingTV
Assuming the 90 days trading horizon Ping An is expected to generate 1.09 times less return on investment than Guizhou BroadcastingTV. But when comparing it to its historical volatility, Ping An Insurance is 1.05 times less risky than Guizhou BroadcastingTV. It trades about 0.17 of its potential returns per unit of risk. Guizhou BroadcastingTV Info is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 742.00 in Guizhou BroadcastingTV Info on September 12, 2024 and sell it today you would earn a total of 249.00 from holding Guizhou BroadcastingTV Info or generate 33.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Ping An Insurance vs. Guizhou BroadcastingTV Info
Performance |
Timeline |
Ping An Insurance |
Guizhou BroadcastingTV |
Ping An and Guizhou BroadcastingTV Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ping An and Guizhou BroadcastingTV
The main advantage of trading using opposite Ping An and Guizhou BroadcastingTV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Guizhou BroadcastingTV 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 Guizhou BroadcastingTV will offset losses from the drop in Guizhou BroadcastingTV'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 |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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