Correlation Between Vanfund Urban and China Life
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By analyzing existing cross correlation between Vanfund Urban Investment and China Life Insurance, you can compare the effects of market volatilities on Vanfund Urban and China Life 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 Vanfund Urban with a short position of China Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanfund Urban and China Life.
Diversification Opportunities for Vanfund Urban and China Life
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vanfund and China is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Vanfund Urban Investment and China Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Life Insurance and Vanfund Urban 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 Vanfund Urban Investment are associated (or correlated) with China Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Life Insurance has no effect on the direction of Vanfund Urban i.e., Vanfund Urban and China Life go up and down completely randomly.
Pair Corralation between Vanfund Urban and China Life
Assuming the 90 days trading horizon Vanfund Urban Investment is expected to generate 1.77 times more return on investment than China Life. However, Vanfund Urban is 1.77 times more volatile than China Life Insurance. It trades about 0.13 of its potential returns per unit of risk. China Life Insurance is currently generating about 0.07 per unit of risk. If you would invest 464.00 in Vanfund Urban Investment on November 3, 2024 and sell it today you would earn a total of 30.00 from holding Vanfund Urban Investment or generate 6.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanfund Urban Investment vs. China Life Insurance
Performance |
| Timeline |
| Vanfund Urban Investment |
| China Life Insurance |
Vanfund Urban and China Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanfund Urban and China Life
The main advantage of trading using opposite Vanfund Urban and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanfund Urban position performs unexpectedly, China Life 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 China Life will offset losses from the drop in China Life's long position.| Vanfund Urban vs. Xinhua Winshare Publishing | Vanfund Urban vs. Chengtun Mining Group | Vanfund Urban vs. Changjiang Publishing Media | Vanfund Urban vs. Time Publishing and |
| China Life vs. Shenzhen Noposion Agrochemicals | China Life vs. Shenyang Chemical Industry | China Life vs. Daoming OpticsChemical Co | China Life vs. Semiconductor Manufacturing Intl |
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 CEOs Directory module to screen CEOs from public companies around the world.
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