Correlation Between Jiangsu Zhongshe and China Life
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By analyzing existing cross correlation between Jiangsu Zhongshe Group and China Life Insurance, you can compare the effects of market volatilities on Jiangsu Zhongshe 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 Jiangsu Zhongshe with a short position of China Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Zhongshe and China Life.
Diversification Opportunities for Jiangsu Zhongshe and China Life
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and China is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Zhongshe Group 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 Jiangsu Zhongshe 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 Jiangsu Zhongshe Group 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 Jiangsu Zhongshe i.e., Jiangsu Zhongshe and China Life go up and down completely randomly.
Pair Corralation between Jiangsu Zhongshe and China Life
Assuming the 90 days trading horizon Jiangsu Zhongshe Group is expected to generate 1.22 times more return on investment than China Life. However, Jiangsu Zhongshe is 1.22 times more volatile than China Life Insurance. It trades about 0.09 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 1,088 in Jiangsu Zhongshe Group on September 12, 2024 and sell it today you would earn a total of 51.00 from holding Jiangsu Zhongshe Group or generate 4.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Jiangsu Zhongshe Group vs. China Life Insurance
Performance |
| Timeline |
| Jiangsu Zhongshe |
| China Life Insurance |
Jiangsu Zhongshe and China Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Zhongshe and China Life
The main advantage of trading using opposite Jiangsu Zhongshe and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Zhongshe 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.| Jiangsu Zhongshe vs. Shenzhen Glory Medical | Jiangsu Zhongshe vs. Gem Year Industrial Co | Jiangsu Zhongshe vs. Cofoe Medical Technology | Jiangsu Zhongshe vs. Hengkang Medical Group |
| China Life vs. China Petroleum Chemical | China Life vs. PetroChina Co Ltd | China Life vs. China Mobile Limited | 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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