Correlation Between Huaibei Mining and China Life
Specify exactly 2 symbols:
By analyzing existing cross correlation between Huaibei Mining Holdings and China Life Insurance, you can compare the effects of market volatilities on Huaibei Mining 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 Huaibei Mining with a short position of China Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaibei Mining and China Life.
Diversification Opportunities for Huaibei Mining and China Life
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Huaibei and China is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Huaibei Mining Holdings 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 Huaibei Mining 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 Huaibei Mining Holdings 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 Huaibei Mining i.e., Huaibei Mining and China Life go up and down completely randomly.
Pair Corralation between Huaibei Mining and China Life
Assuming the 90 days trading horizon Huaibei Mining Holdings is expected to under-perform the China Life. But the stock apears to be less risky and, when comparing its historical volatility, Huaibei Mining Holdings is 2.2 times less risky than China Life. The stock trades about -0.26 of its potential returns per unit of risk. The China Life Insurance is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 4,284 in China Life Insurance on September 3, 2024 and sell it today you would lose (74.00) from holding China Life Insurance or give up 1.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huaibei Mining Holdings vs. China Life Insurance
Performance |
| Timeline |
| Huaibei Mining Holdings |
| China Life Insurance |
Huaibei Mining and China Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaibei Mining and China Life
The main advantage of trading using opposite Huaibei Mining and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaibei Mining 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.| Huaibei Mining vs. Zijin Mining Group | Huaibei Mining vs. Baoshan Iron Steel | Huaibei Mining vs. Hoshine Silicon Ind |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| 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 | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |