Correlation Between Beijing Scitop and China Life
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By analyzing existing cross correlation between Beijing Scitop Bio and China Life Insurance, you can compare the effects of market volatilities on Beijing Scitop 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 Scitop with a short position of China Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Scitop and China Life.
Diversification Opportunities for Beijing Scitop and China Life
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and China is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Scitop Bio 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 Scitop 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 Scitop Bio 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 Scitop i.e., Beijing Scitop and China Life go up and down completely randomly.
Pair Corralation between Beijing Scitop and China Life
Assuming the 90 days trading horizon Beijing Scitop Bio is expected to generate 0.78 times more return on investment than China Life. However, Beijing Scitop Bio is 1.29 times less risky than China Life. It trades about 0.13 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 1,543 in Beijing Scitop Bio on September 3, 2024 and sell it today you would earn a total of 104.00 from holding Beijing Scitop Bio or generate 6.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Scitop Bio vs. China Life Insurance
Performance |
| Timeline |
| Beijing Scitop Bio |
| China Life Insurance |
Beijing Scitop and China Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Scitop and China Life
The main advantage of trading using opposite Beijing Scitop and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Scitop 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 Scitop vs. Southchip Semiconductor Technology | Beijing Scitop vs. Anhui Huilong Agricultural | Beijing Scitop vs. Shaanxi Construction Machinery | Beijing Scitop vs. Will Semiconductor Co |
| China Life vs. Chongqing Road Bridge | China Life vs. Wuhan Xianglong Power | China Life vs. Empyrean Technology Co | China Life vs. Yuanjie Semiconductor Technology |
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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