Correlation Between Industrial Bank and China Life
Specify exactly 2 symbols:
By analyzing existing cross correlation between Industrial Bank Co and China Life Insurance, you can compare the effects of market volatilities on Industrial Bank 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 Industrial Bank with a short position of China Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Bank and China Life.
Diversification Opportunities for Industrial Bank and China Life
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Industrial and China is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Bank Co 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 Industrial Bank 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 Industrial Bank Co 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 Industrial Bank i.e., Industrial Bank and China Life go up and down completely randomly.
Pair Corralation between Industrial Bank and China Life
Assuming the 90 days trading horizon Industrial Bank Co is expected to generate 0.66 times more return on investment than China Life. However, Industrial Bank Co is 1.51 times less risky than China Life. It trades about 0.03 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 1,559 in Industrial Bank Co on August 26, 2024 and sell it today you would earn a total of 221.00 from holding Industrial Bank Co or generate 14.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial Bank Co vs. China Life Insurance
Performance |
| Timeline |
| Industrial Bank |
| China Life Insurance |
Industrial Bank and China Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Bank and China Life
The main advantage of trading using opposite Industrial Bank and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Bank 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.| Industrial Bank vs. Gan Yuan Foods | Industrial Bank vs. Jiangnan Mould Plastic | Industrial Bank vs. Malion New Materials | Industrial Bank vs. Fuda Alloy Materials |
| China Life vs. Ming Yang Smart | China Life vs. 159681 | China Life vs. 159005 | China Life vs. Loctek Ergonomic 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |