Correlation Between Beijing Wandong and China Life
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Wandong Medical and China Life Insurance, you can compare the effects of market volatilities on Beijing Wandong 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 Wandong with a short position of China Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Wandong and China Life.
Diversification Opportunities for Beijing Wandong and China Life
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and China is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Wandong Medical 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 Wandong 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 Wandong Medical 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 Wandong i.e., Beijing Wandong and China Life go up and down completely randomly.
Pair Corralation between Beijing Wandong and China Life
Assuming the 90 days trading horizon Beijing Wandong Medical is expected to under-perform the China Life. In addition to that, Beijing Wandong is 1.04 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 0.02 per unit of volatility. If you would invest 3,738 in China Life Insurance on September 26, 2024 and sell it today you would earn a total of 510.00 from holding China Life Insurance or generate 13.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Wandong Medical vs. China Life Insurance
Performance |
| Timeline |
| Beijing Wandong Medical |
| China Life Insurance |
Beijing Wandong and China Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Wandong and China Life
The main advantage of trading using opposite Beijing Wandong and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Wandong 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 Wandong vs. New China Life | Beijing Wandong vs. Ming Yang Smart | Beijing Wandong vs. 159681 | Beijing Wandong vs. 159005 |
| China Life vs. RoadMain T Co | China Life vs. Kontour Medical Technology | China Life vs. Beijing Wandong Medical | China Life vs. Shandong Hi Speed RoadBridge |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |