Correlation Between By Health and China Life
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By analyzing existing cross correlation between By health and China Life Insurance, you can compare the effects of market volatilities on By Health 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 By Health with a short position of China Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of By Health and China Life.
Diversification Opportunities for By Health and China Life
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 300146 and China is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding By health 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 By Health 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 By health 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 By Health i.e., By Health and China Life go up and down completely randomly.
Pair Corralation between By Health and China Life
Assuming the 90 days trading horizon By health is expected to under-perform the China Life. But the stock apears to be less risky and, when comparing its historical volatility, By health is 1.53 times less risky than China Life. The stock trades about -0.11 of its potential returns per unit of risk. The China Life Insurance is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 4,332 in China Life Insurance on August 29, 2024 and sell it today you would lose (203.00) from holding China Life Insurance or give up 4.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
By health vs. China Life Insurance
Performance |
| Timeline |
| By health |
| China Life Insurance |
By Health and China Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with By Health and China Life
The main advantage of trading using opposite By Health and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if By Health 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.| By Health vs. PetroChina Co Ltd | By Health vs. China Mobile Limited | By Health vs. Ping An Insurance | By Health vs. China Petroleum Chemical |
| China Life vs. City Development Environment | China Life vs. Central Plains Environment | China Life vs. By health | China Life vs. Zhongshan Public Utilities |
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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