Correlation Between Dook Media and China Life
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By analyzing existing cross correlation between Dook Media Group and China Life Insurance, you can compare the effects of market volatilities on Dook Media 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 Dook Media with a short position of China Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dook Media and China Life.
Diversification Opportunities for Dook Media and China Life
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dook and China is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Dook Media 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 Dook Media 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 Dook Media 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 Dook Media i.e., Dook Media and China Life go up and down completely randomly.
Pair Corralation between Dook Media and China Life
Assuming the 90 days trading horizon Dook Media Group is expected to under-perform the China Life. In addition to that, Dook Media is 1.69 times more volatile than China Life Insurance. It trades about -0.45 of its total potential returns per unit of risk. China Life Insurance is currently generating about -0.3 per unit of volatility. If you would invest 4,407 in China Life Insurance on October 9, 2024 and sell it today you would lose (489.00) from holding China Life Insurance or give up 11.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dook Media Group vs. China Life Insurance
Performance |
| Timeline |
| Dook Media Group |
| China Life Insurance |
Dook Media and China Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dook Media and China Life
The main advantage of trading using opposite Dook Media and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dook Media 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.| Dook Media vs. BeiGene | Dook Media vs. Kweichow Moutai Co | Dook Media vs. Beijing Roborock Technology | Dook Media vs. G bits Network Technology |
| China Life vs. JuneYao Dairy Co | China Life vs. Great Sun Foods Co | China Life vs. Zhongyin Babi Food | China Life vs. China Eastern Airlines |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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