Correlation Between Dongxing Sec and China Life
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By analyzing existing cross correlation between Dongxing Sec Co and China Life Insurance, you can compare the effects of market volatilities on Dongxing Sec 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 Dongxing Sec with a short position of China Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongxing Sec and China Life.
Diversification Opportunities for Dongxing Sec and China Life
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dongxing and China is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Dongxing Sec 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 Dongxing Sec 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 Dongxing Sec 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 Dongxing Sec i.e., Dongxing Sec and China Life go up and down completely randomly.
Pair Corralation between Dongxing Sec and China Life
Assuming the 90 days trading horizon Dongxing Sec Co is expected to generate 0.97 times more return on investment than China Life. However, Dongxing Sec Co is 1.03 times less risky than China Life. It trades about 0.04 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 831.00 in Dongxing Sec Co on August 26, 2024 and sell it today you would earn a total of 277.00 from holding Dongxing Sec Co or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongxing Sec Co vs. China Life Insurance
Performance |
| Timeline |
| Dongxing Sec |
| China Life Insurance |
Dongxing Sec and China Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongxing Sec and China Life
The main advantage of trading using opposite Dongxing Sec and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongxing Sec 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.| Dongxing Sec vs. Industrial and Commercial | Dongxing Sec vs. Agricultural Bank of | Dongxing Sec vs. China Construction Bank | Dongxing Sec vs. Bank of China |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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