Correlation Between Ye Chiu and China Life
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By analyzing existing cross correlation between Ye Chiu Metal and China Life Insurance, you can compare the effects of market volatilities on Ye Chiu 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 Ye Chiu with a short position of China Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and China Life.
Diversification Opportunities for Ye Chiu and China Life
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 601388 and China is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal 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 Ye Chiu 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 Ye Chiu Metal 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 Ye Chiu i.e., Ye Chiu and China Life go up and down completely randomly.
Pair Corralation between Ye Chiu and China Life
Assuming the 90 days trading horizon Ye Chiu Metal is expected to under-perform the China Life. In addition to that, Ye Chiu is 1.17 times more volatile than China Life Insurance. It trades about -0.01 of its total potential returns per unit of risk. China Life Insurance is currently generating about 0.03 per unit of volatility. If you would invest 3,484 in China Life Insurance on September 2, 2024 and sell it today you would earn a total of 726.00 from holding China Life Insurance or generate 20.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ye Chiu Metal vs. China Life Insurance
Performance |
| Timeline |
| Ye Chiu Metal |
| China Life Insurance |
Ye Chiu and China Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and China Life
The main advantage of trading using opposite Ye Chiu and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu 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.| Ye Chiu vs. Wanhua Chemical Group | Ye Chiu vs. Baoshan Iron Steel | Ye Chiu vs. Shandong Gold Mining | Ye Chiu vs. Rongsheng Petrochemical Co |
| China Life vs. Industrial and Commercial | China Life vs. China Construction Bank | China Life vs. Bank of China | China Life vs. Agricultural Bank of |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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