Correlation Between Chengdu B-ray and China Life
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By analyzing existing cross correlation between Chengdu B ray Media and China Life Insurance, you can compare the effects of market volatilities on Chengdu B-ray 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 Chengdu B-ray with a short position of China Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu B-ray and China Life.
Diversification Opportunities for Chengdu B-ray and China Life
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Chengdu and China is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu B ray Media 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 Chengdu B-ray 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 Chengdu B ray Media 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 Chengdu B-ray i.e., Chengdu B-ray and China Life go up and down completely randomly.
Pair Corralation between Chengdu B-ray and China Life
Assuming the 90 days trading horizon Chengdu B ray Media is expected to under-perform the China Life. In addition to that, Chengdu B-ray is 1.76 times more volatile than China Life Insurance. It trades about -0.06 of its total potential returns per unit of risk. China Life Insurance is currently generating about 0.07 per unit of volatility. If you would invest 3,982 in China Life Insurance on November 3, 2024 and sell it today you would earn a total of 78.00 from holding China Life Insurance or generate 1.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu B ray Media vs. China Life Insurance
Performance |
| Timeline |
| Chengdu B ray |
| China Life Insurance |
Chengdu B-ray and China Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu B-ray and China Life
The main advantage of trading using opposite Chengdu B-ray and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu B-ray 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.| Chengdu B-ray vs. Guangdong Sunwill Precising | Chengdu B-ray vs. Shengda Mining Co | Chengdu B-ray vs. Jilin OLED Material | Chengdu B-ray vs. Malion New Materials |
| China Life vs. Shenzhen Noposion Agrochemicals | China Life vs. Shenyang Chemical Industry | China Life vs. Daoming OpticsChemical Co | China Life vs. Semiconductor Manufacturing Intl |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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