Correlation Between Tianjin Hi and China Life
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By analyzing existing cross correlation between Tianjin Hi Tech Development and China Life Insurance, you can compare the effects of market volatilities on Tianjin Hi 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 Tianjin Hi with a short position of China Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Hi and China Life.
Diversification Opportunities for Tianjin Hi and China Life
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tianjin and China is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Hi Tech Development 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 Tianjin Hi 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 Tianjin Hi Tech Development 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 Tianjin Hi i.e., Tianjin Hi and China Life go up and down completely randomly.
Pair Corralation between Tianjin Hi and China Life
Assuming the 90 days trading horizon Tianjin Hi Tech Development is expected to generate 1.18 times more return on investment than China Life. However, Tianjin Hi is 1.18 times more volatile than China Life Insurance. It trades about 0.35 of its potential returns per unit of risk. China Life Insurance is currently generating about 0.13 per unit of risk. If you would invest 255.00 in Tianjin Hi Tech Development on November 5, 2024 and sell it today you would earn a total of 31.00 from holding Tianjin Hi Tech Development or generate 12.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Hi Tech Development vs. China Life Insurance
Performance |
| Timeline |
| Tianjin Hi Tech |
| China Life Insurance |
Tianjin Hi and China Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Hi and China Life
The main advantage of trading using opposite Tianjin Hi and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Hi 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.| Tianjin Hi vs. Central Plains Environment | Tianjin Hi vs. Hubei Tech Semiconductors | Tianjin Hi vs. StarPower Semiconductor | Tianjin Hi vs. Elite Color Environmental |
| China Life vs. Eastern Communications Co | China Life vs. Queclink Wireless Solutions | China Life vs. Tongyu Communication | China Life vs. Shenzhen SDG Information |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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