Correlation Between Zhejiang JIULI and China Life
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By analyzing existing cross correlation between Zhejiang JIULI Hi tech and China Life Insurance, you can compare the effects of market volatilities on Zhejiang JIULI 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 JIULI with a short position of China Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang JIULI and China Life.
Diversification Opportunities for Zhejiang JIULI and China Life
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and China is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang JIULI Hi tech 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 JIULI 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 JIULI Hi tech 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 JIULI i.e., Zhejiang JIULI and China Life go up and down completely randomly.
Pair Corralation between Zhejiang JIULI and China Life
Assuming the 90 days trading horizon Zhejiang JIULI is expected to generate 1.19 times less return on investment than China Life. But when comparing it to its historical volatility, Zhejiang JIULI Hi tech is 1.31 times less risky than China Life. It trades about 0.15 of its potential returns per unit of risk. China Life Insurance is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 3,260 in China Life Insurance on August 28, 2024 and sell it today you would earn a total of 836.00 from holding China Life Insurance or generate 25.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang JIULI Hi tech vs. China Life Insurance
Performance |
| Timeline |
| Zhejiang JIULI Hi |
| China Life Insurance |
Zhejiang JIULI and China Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang JIULI and China Life
The main advantage of trading using opposite Zhejiang JIULI and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang JIULI 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 JIULI vs. Wanhua Chemical Group | Zhejiang JIULI vs. Shandong Gold Mining | Zhejiang JIULI vs. Rongsheng Petrochemical Co | Zhejiang JIULI vs. Inner Mongolia BaoTou |
| China Life vs. Kuangda Technology Group | China Life vs. Zhejiang Kingland Pipeline | China Life vs. Xizi Clean Energy | China Life vs. Uxi Unicomp Technology |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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