Correlation Between Zhejiang Yinlun and China Life
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By analyzing existing cross correlation between Zhejiang Yinlun Machinery and China Life Insurance, you can compare the effects of market volatilities on Zhejiang Yinlun 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 Zhejiang Yinlun with a short position of China Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yinlun and China Life.
Diversification Opportunities for Zhejiang Yinlun and China Life
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhejiang and China is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yinlun Machinery 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 Zhejiang Yinlun 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 Zhejiang Yinlun Machinery 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 Zhejiang Yinlun i.e., Zhejiang Yinlun and China Life go up and down completely randomly.
Pair Corralation between Zhejiang Yinlun and China Life
Assuming the 90 days trading horizon Zhejiang Yinlun Machinery is expected to under-perform the China Life. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Yinlun Machinery is 1.38 times less risky than China Life. The stock trades about -0.08 of its potential returns per unit of risk. The China Life Insurance is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 4,400 in China Life Insurance on August 29, 2024 and sell it today you would lose (271.00) from holding China Life Insurance or give up 6.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yinlun Machinery vs. China Life Insurance
Performance |
| Timeline |
| Zhejiang Yinlun Machinery |
| China Life Insurance |
Zhejiang Yinlun and China Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yinlun and China Life
The main advantage of trading using opposite Zhejiang Yinlun and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yinlun 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.| Zhejiang Yinlun vs. Agricultural Bank of | Zhejiang Yinlun vs. Industrial and Commercial | Zhejiang Yinlun vs. Bank of China | Zhejiang Yinlun vs. China Construction Bank |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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