Correlation Between Empyrean Technology and China Life
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By analyzing existing cross correlation between Empyrean Technology Co and China Life Insurance, you can compare the effects of market volatilities on Empyrean Technology 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 Empyrean Technology with a short position of China Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Empyrean Technology and China Life.
Diversification Opportunities for Empyrean Technology and China Life
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Empyrean and China is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Empyrean Technology Co 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 Empyrean Technology 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 Empyrean Technology Co 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 Empyrean Technology i.e., Empyrean Technology and China Life go up and down completely randomly.
Pair Corralation between Empyrean Technology and China Life
Assuming the 90 days trading horizon Empyrean Technology Co is expected to generate 2.27 times more return on investment than China Life. However, Empyrean Technology is 2.27 times more volatile than China Life Insurance. It trades about 0.25 of its potential returns per unit of risk. China Life Insurance is currently generating about 0.0 per unit of risk. If you would invest 9,435 in Empyrean Technology Co on September 4, 2024 and sell it today you would earn a total of 4,000 from holding Empyrean Technology Co or generate 42.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Empyrean Technology Co vs. China Life Insurance
Performance |
| Timeline |
| Empyrean Technology |
| China Life Insurance |
Empyrean Technology and China Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Empyrean Technology and China Life
The main advantage of trading using opposite Empyrean Technology and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Empyrean Technology 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.| Empyrean Technology vs. HMTNew Technical | Empyrean Technology vs. Holitech Technology Co | Empyrean Technology vs. Sinofibers Technology Co | Empyrean Technology vs. Western Metal Materials |
| China Life vs. Beijing Kaiwen Education | China Life vs. Shanghai Action Education | China Life vs. Chengtun Mining Group | China Life vs. Zhejiang Publishing Media |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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