Correlation Between State Grid and China Life
Specify exactly 2 symbols:
By analyzing existing cross correlation between State Grid InformationCommunication and China Life Insurance, you can compare the effects of market volatilities on State Grid 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 State Grid with a short position of China Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and China Life.
Diversification Opportunities for State Grid and China Life
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between State and China is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic 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 State Grid 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 State Grid InformationCommunication 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 State Grid i.e., State Grid and China Life go up and down completely randomly.
Pair Corralation between State Grid and China Life
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to generate 1.27 times more return on investment than China Life. However, State Grid is 1.27 times more volatile than China Life Insurance. It trades about 0.0 of its potential returns per unit of risk. China Life Insurance is currently generating about -0.09 per unit of risk. If you would invest 1,816 in State Grid InformationCommunication on October 14, 2024 and sell it today you would lose (59.00) from holding State Grid InformationCommunication or give up 3.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Grid InformationCommunic vs. China Life Insurance
Performance |
| Timeline |
| State Grid Informati |
| China Life Insurance |
State Grid and China Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and China Life
The main advantage of trading using opposite State Grid and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid 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.| State Grid vs. Shenyang Chemical Industry | State Grid vs. Huasi Agricultural Development | State Grid vs. Dosilicon Co | State Grid vs. Sinomach General Machinery |
| China Life vs. State Grid InformationCommunication | China Life vs. Bank of Communications | China Life vs. Anji Foodstuff Co | China Life vs. Wintao Communications Co |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Positions Ratings 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 | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |