Correlation Between Shenzhen Worldunion and China Life
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By analyzing existing cross correlation between Shenzhen Worldunion Properties and China Life Insurance, you can compare the effects of market volatilities on Shenzhen Worldunion 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 Worldunion with a short position of China Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Worldunion and China Life.
Diversification Opportunities for Shenzhen Worldunion and China Life
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and China is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Worldunion Properties 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 Worldunion 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 Worldunion Properties 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 Worldunion i.e., Shenzhen Worldunion and China Life go up and down completely randomly.
Pair Corralation between Shenzhen Worldunion and China Life
Assuming the 90 days trading horizon Shenzhen Worldunion Properties is expected to generate 1.83 times more return on investment than China Life. However, Shenzhen Worldunion is 1.83 times more volatile than China Life Insurance. It trades about 0.15 of its potential returns per unit of risk. China Life Insurance is currently generating about 0.12 per unit of risk. If you would invest 168.00 in Shenzhen Worldunion Properties on September 13, 2024 and sell it today you would earn a total of 187.00 from holding Shenzhen Worldunion Properties or generate 111.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.18% |
| Values | Daily Returns |
Shenzhen Worldunion Properties vs. China Life Insurance
Performance |
| Timeline |
| Shenzhen Worldunion |
| China Life Insurance |
Shenzhen Worldunion and China Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Worldunion and China Life
The main advantage of trading using opposite Shenzhen Worldunion and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Worldunion 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 Worldunion vs. China Life Insurance | Shenzhen Worldunion vs. Cinda Securities Co | Shenzhen Worldunion vs. Piotech Inc A | Shenzhen Worldunion vs. Dongxing Sec Co |
| China Life vs. BYD Co Ltd | China Life vs. China Mobile Limited | China Life vs. Agricultural Bank of | China Life vs. Industrial and Commercial |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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