Correlation Between Fujian Oriental and China Life
Specify exactly 2 symbols:
By analyzing existing cross correlation between Fujian Oriental Silver and China Life Insurance, you can compare the effects of market volatilities on Fujian Oriental 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 Fujian Oriental with a short position of China Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Oriental and China Life.
Diversification Opportunities for Fujian Oriental and China Life
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fujian and China is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Oriental Silver 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 Fujian Oriental 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 Fujian Oriental Silver 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 Fujian Oriental i.e., Fujian Oriental and China Life go up and down completely randomly.
Pair Corralation between Fujian Oriental and China Life
Assuming the 90 days trading horizon Fujian Oriental Silver is expected to generate 1.05 times more return on investment than China Life. However, Fujian Oriental is 1.05 times more volatile than China Life Insurance. It trades about 0.17 of its potential returns per unit of risk. China Life Insurance is currently generating about 0.02 per unit of risk. If you would invest 726.00 in Fujian Oriental Silver on September 5, 2024 and sell it today you would earn a total of 90.00 from holding Fujian Oriental Silver or generate 12.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Oriental Silver vs. China Life Insurance
Performance |
| Timeline |
| Fujian Oriental Silver |
| China Life Insurance |
Fujian Oriental and China Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Oriental and China Life
The main advantage of trading using opposite Fujian Oriental and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Oriental 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.| Fujian Oriental vs. Biwin Storage Technology | Fujian Oriental vs. PetroChina Co Ltd | Fujian Oriental vs. Industrial and Commercial | Fujian Oriental vs. China Construction Bank |
| China Life vs. Fujian Oriental Silver | China Life vs. Humanwell Healthcare Group | China Life vs. Chenzhou Jingui Silver | China Life vs. Jiangxi Naipu Mining |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |