Correlation Between China Life and North Huajin
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Life Insurance and North Huajin Chemical, you can compare the effects of market volatilities on China Life and North Huajin 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 China Life with a short position of North Huajin. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Life and North Huajin.
Diversification Opportunities for China Life and North Huajin
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and North is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding China Life Insurance and North Huajin Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Huajin Chemical and China Life 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 China Life Insurance are associated (or correlated) with North Huajin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Huajin Chemical has no effect on the direction of China Life i.e., China Life and North Huajin go up and down completely randomly.
Pair Corralation between China Life and North Huajin
Assuming the 90 days trading horizon China Life Insurance is expected to generate 0.99 times more return on investment than North Huajin. However, China Life Insurance is 1.01 times less risky than North Huajin. It trades about 0.02 of its potential returns per unit of risk. North Huajin Chemical is currently generating about -0.01 per unit of risk. If you would invest 4,188 in China Life Insurance on September 1, 2024 and sell it today you would earn a total of 22.00 from holding China Life Insurance or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
China Life Insurance vs. North Huajin Chemical
Performance |
| Timeline |
| China Life Insurance |
| North Huajin Chemical |
China Life and North Huajin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Life and North Huajin
The main advantage of trading using opposite China Life and North Huajin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Life position performs unexpectedly, North Huajin 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 North Huajin will offset losses from the drop in North Huajin's long position.| China Life vs. Industrial and Commercial | China Life vs. China Construction Bank | China Life vs. Bank of China | China Life vs. Agricultural Bank of |
| North Huajin vs. Aurora Optoelectronics Co | North Huajin vs. Anhui Jianghuai Automobile | North Huajin vs. China Life Insurance | North Huajin vs. Haima Automobile Group |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Transaction History View history of all your transactions and understand their impact on performance |