Correlation Between Beijing Kaiwen and China Life
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By analyzing existing cross correlation between Beijing Kaiwen Education and China Life Insurance, you can compare the effects of market volatilities on Beijing Kaiwen 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 Beijing Kaiwen with a short position of China Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kaiwen and China Life.
Diversification Opportunities for Beijing Kaiwen and China Life
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and China is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kaiwen Education 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 Beijing Kaiwen 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 Beijing Kaiwen Education 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 Beijing Kaiwen i.e., Beijing Kaiwen and China Life go up and down completely randomly.
Pair Corralation between Beijing Kaiwen and China Life
Assuming the 90 days trading horizon Beijing Kaiwen Education is expected to generate 1.24 times more return on investment than China Life. However, Beijing Kaiwen is 1.24 times more volatile than China Life Insurance. It trades about 0.13 of its potential returns per unit of risk. China Life Insurance is currently generating about 0.14 per unit of risk. If you would invest 412.00 in Beijing Kaiwen Education on September 4, 2024 and sell it today you would earn a total of 120.00 from holding Beijing Kaiwen Education or generate 29.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Kaiwen Education vs. China Life Insurance
Performance |
| Timeline |
| Beijing Kaiwen Education |
| China Life Insurance |
Beijing Kaiwen and China Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kaiwen and China Life
The main advantage of trading using opposite Beijing Kaiwen and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kaiwen 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.| Beijing Kaiwen vs. China Life Insurance | Beijing Kaiwen vs. Cinda Securities Co | Beijing Kaiwen vs. Dongxing Sec Co | Beijing Kaiwen vs. Shanghai OPM Biosciences |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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