Correlation Between Ziel Home and China Life
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By analyzing existing cross correlation between Ziel Home Furnishing and China Life Insurance, you can compare the effects of market volatilities on Ziel Home 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 Ziel Home with a short position of China Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ziel Home and China Life.
Diversification Opportunities for Ziel Home and China Life
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ziel and China is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Ziel Home Furnishing 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 Ziel Home 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 Ziel Home Furnishing 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 Ziel Home i.e., Ziel Home and China Life go up and down completely randomly.
Pair Corralation between Ziel Home and China Life
Assuming the 90 days trading horizon Ziel Home is expected to generate 2.77 times less return on investment than China Life. In addition to that, Ziel Home is 1.63 times more volatile than China Life Insurance. It trades about 0.01 of its total potential returns per unit of risk. China Life Insurance is currently generating about 0.03 per unit of volatility. If you would invest 3,369 in China Life Insurance on September 1, 2024 and sell it today you would earn a total of 841.00 from holding China Life Insurance or generate 24.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 80.0% |
| Values | Daily Returns |
Ziel Home Furnishing vs. China Life Insurance
Performance |
| Timeline |
| Ziel Home Furnishing |
| China Life Insurance |
Ziel Home and China Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ziel Home and China Life
The main advantage of trading using opposite Ziel Home and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ziel Home 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.| Ziel Home vs. Kweichow Moutai Co | Ziel Home vs. Contemporary Amperex Technology | Ziel Home vs. G bits Network Technology | Ziel Home vs. BYD Co Ltd |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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