Correlation Between Shenzhen Noposion and China Life
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and China Life Insurance, you can compare the effects of market volatilities on Shenzhen Noposion 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 Shenzhen Noposion with a short position of China Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and China Life.
Diversification Opportunities for Shenzhen Noposion and China Life
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and China is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical 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 Shenzhen Noposion 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 Shenzhen Noposion Agrochemicals 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 Shenzhen Noposion i.e., Shenzhen Noposion and China Life go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and China Life
Assuming the 90 days trading horizon Shenzhen Noposion Agrochemicals is expected to generate 1.17 times more return on investment than China Life. However, Shenzhen Noposion is 1.17 times more volatile than China Life Insurance. It trades about 0.07 of its potential returns per unit of risk. China Life Insurance is currently generating about 0.03 per unit of risk. If you would invest 529.00 in Shenzhen Noposion Agrochemicals on September 4, 2024 and sell it today you would earn a total of 484.00 from holding Shenzhen Noposion Agrochemicals or generate 91.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Noposion Agrochemical vs. China Life Insurance
Performance |
| Timeline |
| Shenzhen Noposion |
| China Life Insurance |
Shenzhen Noposion and China Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Noposion and China Life
The main advantage of trading using opposite Shenzhen Noposion and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion 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.| Shenzhen Noposion vs. Zijin Mining Group | Shenzhen Noposion vs. Wanhua Chemical Group | Shenzhen Noposion vs. Baoshan Iron Steel | Shenzhen Noposion vs. Rongsheng Petrochemical Co |
| China Life vs. Beijing Kaiwen Education | China Life vs. Shanghai Action Education | China Life vs. Chengtun Mining Group | China Life vs. Zhejiang Publishing Media |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |