Correlation Between Dezhan HealthCare and China Life
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By analyzing existing cross correlation between Dezhan HealthCare Co and China Life Insurance, you can compare the effects of market volatilities on Dezhan HealthCare 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 Dezhan HealthCare with a short position of China Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dezhan HealthCare and China Life.
Diversification Opportunities for Dezhan HealthCare and China Life
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Dezhan and China is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Dezhan HealthCare Co 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 Dezhan HealthCare 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 Dezhan HealthCare Co 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 Dezhan HealthCare i.e., Dezhan HealthCare and China Life go up and down completely randomly.
Pair Corralation between Dezhan HealthCare and China Life
Assuming the 90 days trading horizon Dezhan HealthCare Co is expected to under-perform the China Life. In addition to that, Dezhan HealthCare is 1.29 times more volatile than China Life Insurance. It trades about -0.05 of its total potential returns per unit of risk. China Life Insurance is currently generating about 0.13 per unit of volatility. If you would invest 3,918 in China Life Insurance on November 5, 2024 and sell it today you would earn a total of 142.00 from holding China Life Insurance or generate 3.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dezhan HealthCare Co vs. China Life Insurance
Performance |
| Timeline |
| Dezhan HealthCare |
| China Life Insurance |
Dezhan HealthCare and China Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dezhan HealthCare and China Life
The main advantage of trading using opposite Dezhan HealthCare and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dezhan HealthCare 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.| Dezhan HealthCare vs. Namchow Food Group | Dezhan HealthCare vs. Zhongyin Babi Food | Dezhan HealthCare vs. Jiamei Food Packaging | Dezhan HealthCare vs. Kingclean Electric Co |
| China Life vs. Eastern Communications Co | China Life vs. Queclink Wireless Solutions | China Life vs. Tongyu Communication | China Life vs. Shenzhen SDG Information |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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