Correlation Between Harbin Hatou and China Life
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By analyzing existing cross correlation between Harbin Hatou Investment and China Life Insurance, you can compare the effects of market volatilities on Harbin Hatou 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 Harbin Hatou with a short position of China Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and China Life.
Diversification Opportunities for Harbin Hatou and China Life
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Harbin and China is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment 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 Harbin Hatou 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 Harbin Hatou Investment 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 Harbin Hatou i.e., Harbin Hatou and China Life go up and down completely randomly.
Pair Corralation between Harbin Hatou and China Life
Assuming the 90 days trading horizon Harbin Hatou Investment is expected to generate 1.22 times more return on investment than China Life. However, Harbin Hatou is 1.22 times more volatile than China Life Insurance. It trades about 0.04 of its potential returns per unit of risk. China Life Insurance is currently generating about 0.03 per unit of risk. If you would invest 494.00 in Harbin Hatou Investment on September 3, 2024 and sell it today you would earn a total of 178.00 from holding Harbin Hatou Investment or generate 36.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Hatou Investment vs. China Life Insurance
Performance |
| Timeline |
| Harbin Hatou Investment |
| China Life Insurance |
Harbin Hatou and China Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Hatou and China Life
The main advantage of trading using opposite Harbin Hatou and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou 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.| Harbin Hatou vs. Linewell Software Co | Harbin Hatou vs. Maxvision Technology Corp | Harbin Hatou vs. Sportsoul Co Ltd | Harbin Hatou vs. Hubei Forbon Technology |
| China Life vs. Chongqing Road Bridge | China Life vs. Wuhan Xianglong Power | China Life vs. Empyrean Technology Co | China Life vs. Yuanjie Semiconductor Technology |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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