Correlation Between Hithink RoyalFlush and China Life
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By analyzing existing cross correlation between Hithink RoyalFlush Info and China Life Insurance, you can compare the effects of market volatilities on Hithink RoyalFlush 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 Hithink RoyalFlush with a short position of China Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hithink RoyalFlush and China Life.
Diversification Opportunities for Hithink RoyalFlush and China Life
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hithink and China is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Hithink RoyalFlush Info 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 Hithink RoyalFlush 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 Hithink RoyalFlush Info 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 Hithink RoyalFlush i.e., Hithink RoyalFlush and China Life go up and down completely randomly.
Pair Corralation between Hithink RoyalFlush and China Life
Assuming the 90 days trading horizon Hithink RoyalFlush Info is expected to generate 2.52 times more return on investment than China Life. However, Hithink RoyalFlush is 2.52 times more volatile than China Life Insurance. It trades about 0.31 of its potential returns per unit of risk. China Life Insurance is currently generating about 0.02 per unit of risk. If you would invest 20,503 in Hithink RoyalFlush Info on September 1, 2024 and sell it today you would earn a total of 13,064 from holding Hithink RoyalFlush Info or generate 63.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hithink RoyalFlush Info vs. China Life Insurance
Performance |
| Timeline |
| Hithink RoyalFlush Info |
| China Life Insurance |
Hithink RoyalFlush and China Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hithink RoyalFlush and China Life
The main advantage of trading using opposite Hithink RoyalFlush and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hithink RoyalFlush 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.| Hithink RoyalFlush vs. China Life Insurance | Hithink RoyalFlush vs. Cinda Securities Co | Hithink RoyalFlush vs. Piotech Inc A | Hithink RoyalFlush vs. Dongxing Sec Co |
| China Life vs. Industrial and Commercial | China Life vs. China Construction Bank | China Life vs. Bank of China | China Life vs. Agricultural Bank of |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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