Correlation Between Guosheng Financial and China Life
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By analyzing existing cross correlation between Guosheng Financial Holding and China Life Insurance, you can compare the effects of market volatilities on Guosheng Financial 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 Guosheng Financial with a short position of China Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guosheng Financial and China Life.
Diversification Opportunities for Guosheng Financial and China Life
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guosheng and China is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Guosheng Financial Holding 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 Guosheng Financial 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 Guosheng Financial Holding 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 Guosheng Financial i.e., Guosheng Financial and China Life go up and down completely randomly.
Pair Corralation between Guosheng Financial and China Life
Assuming the 90 days trading horizon Guosheng Financial Holding is expected to generate 1.74 times more return on investment than China Life. However, Guosheng Financial is 1.74 times more volatile than China Life Insurance. It trades about 0.04 of its potential returns per unit of risk. China Life Insurance is currently generating about -0.01 per unit of risk. If you would invest 1,342 in Guosheng Financial Holding on December 6, 2024 and sell it today you would earn a total of 22.00 from holding Guosheng Financial Holding or generate 1.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guosheng Financial Holding vs. China Life Insurance
Performance |
| Timeline |
| Guosheng Financial |
| China Life Insurance |
Guosheng Financial and China Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guosheng Financial and China Life
The main advantage of trading using opposite Guosheng Financial and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guosheng Financial 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.| Guosheng Financial vs. Tonghua Grape Wine | Guosheng Financial vs. Dhc Software Co | Guosheng Financial vs. Hubei Forbon Technology | Guosheng Financial vs. Olympic Circuit Technology |
| China Life vs. Kuang Chi Technologies | China Life vs. Shandong Longquan Pipeline | China Life vs. Aluminum Corp of | China Life vs. Shandong Hongchuang Aluminum |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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