Correlation Between Zhongshan Public and China Life
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By analyzing existing cross correlation between Zhongshan Public Utilities and China Life Insurance, you can compare the effects of market volatilities on Zhongshan Public 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 Zhongshan Public with a short position of China Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongshan Public and China Life.
Diversification Opportunities for Zhongshan Public and China Life
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhongshan and China is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Zhongshan Public Utilities 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 Zhongshan Public 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 Zhongshan Public Utilities 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 Zhongshan Public i.e., Zhongshan Public and China Life go up and down completely randomly.
Pair Corralation between Zhongshan Public and China Life
Assuming the 90 days trading horizon Zhongshan Public Utilities is expected to generate 0.59 times more return on investment than China Life. However, Zhongshan Public Utilities is 1.69 times less risky than China Life. It trades about -0.03 of its potential returns per unit of risk. China Life Insurance is currently generating about -0.05 per unit of risk. If you would invest 873.00 in Zhongshan Public Utilities on August 29, 2024 and sell it today you would lose (13.00) from holding Zhongshan Public Utilities or give up 1.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongshan Public Utilities vs. China Life Insurance
Performance |
| Timeline |
| Zhongshan Public Uti |
| China Life Insurance |
Zhongshan Public and China Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongshan Public and China Life
The main advantage of trading using opposite Zhongshan Public and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongshan Public 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.| Zhongshan Public vs. Jinling Hotel Corp | Zhongshan Public vs. Marssenger Kitchenware Co | Zhongshan Public vs. Soyea Technology Co | Zhongshan Public vs. ROPEOK Technology Group |
| China Life vs. City Development Environment | China Life vs. Central Plains Environment | China Life vs. By health | China Life vs. Zhongshan Public Utilities |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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