Correlation Between Jiangxi Hengda and China Life
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangxi Hengda Hi Tech and China Life Insurance, you can compare the effects of market volatilities on Jiangxi Hengda 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 Jiangxi Hengda with a short position of China Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Hengda and China Life.
Diversification Opportunities for Jiangxi Hengda and China Life
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiangxi and China is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Hengda 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 Jiangxi Hengda 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 Jiangxi Hengda 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 Jiangxi Hengda i.e., Jiangxi Hengda and China Life go up and down completely randomly.
Pair Corralation between Jiangxi Hengda and China Life
Assuming the 90 days trading horizon Jiangxi Hengda Hi Tech is expected to generate 1.84 times more return on investment than China Life. However, Jiangxi Hengda is 1.84 times more volatile than China Life Insurance. It trades about -0.01 of its potential returns per unit of risk. China Life Insurance is currently generating about -0.13 per unit of risk. If you would invest 503.00 in Jiangxi Hengda Hi Tech on October 30, 2024 and sell it today you would lose (12.00) from holding Jiangxi Hengda Hi Tech or give up 2.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Hengda Hi Tech vs. China Life Insurance
Performance |
| Timeline |
| Jiangxi Hengda Hi |
| China Life Insurance |
Jiangxi Hengda and China Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Hengda and China Life
The main advantage of trading using opposite Jiangxi Hengda and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Hengda 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.| Jiangxi Hengda vs. Zijin Mining Group | Jiangxi Hengda vs. Wanhua Chemical Group | Jiangxi Hengda vs. Baoshan Iron Steel | Jiangxi Hengda vs. Shandong Gold Mining |
| China Life vs. BizConf Telecom Co | China Life vs. Shenzhen Zhongzhuang Construction | China Life vs. Agricultural Bank of | China Life vs. Wintao Communications Co |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |