Correlation Between China Life and Beijing Shunxin
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By analyzing existing cross correlation between China Life Insurance and Beijing Shunxin Agriculture, you can compare the effects of market volatilities on China Life and Beijing Shunxin 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 Beijing Shunxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Life and Beijing Shunxin.
Diversification Opportunities for China Life and Beijing Shunxin
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Beijing is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding China Life Insurance and Beijing Shunxin Agriculture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Shunxin Agri 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 Beijing Shunxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Shunxin Agri has no effect on the direction of China Life i.e., China Life and Beijing Shunxin go up and down completely randomly.
Pair Corralation between China Life and Beijing Shunxin
Assuming the 90 days trading horizon China Life Insurance is expected to generate 0.78 times more return on investment than Beijing Shunxin. However, China Life Insurance is 1.28 times less risky than Beijing Shunxin. It trades about 0.06 of its potential returns per unit of risk. Beijing Shunxin Agriculture is currently generating about -0.01 per unit of risk. If you would invest 3,136 in China Life Insurance on September 14, 2024 and sell it today you would earn a total of 1,079 from holding China Life Insurance or generate 34.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Life Insurance vs. Beijing Shunxin Agriculture
Performance |
| Timeline |
| China Life Insurance |
| Beijing Shunxin Agri |
China Life and Beijing Shunxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Life and Beijing Shunxin
The main advantage of trading using opposite China Life and Beijing Shunxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Life position performs unexpectedly, Beijing Shunxin 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 Beijing Shunxin will offset losses from the drop in Beijing Shunxin's long position.| China Life vs. BYD Co Ltd | China Life vs. China Mobile Limited | China Life vs. Agricultural Bank of | China Life vs. Industrial and Commercial |
| Beijing Shunxin vs. China Life Insurance | Beijing Shunxin vs. Cinda Securities Co | Beijing Shunxin vs. Piotech Inc A | Beijing Shunxin vs. Dongxing Sec Co |
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.
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