Correlation Between China Life and Shenzhen Hifuture
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By analyzing existing cross correlation between China Life Insurance and Shenzhen Hifuture Electric, you can compare the effects of market volatilities on China Life and Shenzhen Hifuture 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 Shenzhen Hifuture. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Life and Shenzhen Hifuture.
Diversification Opportunities for China Life and Shenzhen Hifuture
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Shenzhen is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding China Life Insurance and Shenzhen Hifuture Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Hifuture 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 Shenzhen Hifuture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Hifuture has no effect on the direction of China Life i.e., China Life and Shenzhen Hifuture go up and down completely randomly.
Pair Corralation between China Life and Shenzhen Hifuture
Assuming the 90 days trading horizon China Life Insurance is expected to under-perform the Shenzhen Hifuture. In addition to that, China Life is 1.11 times more volatile than Shenzhen Hifuture Electric. It trades about -0.09 of its total potential returns per unit of risk. Shenzhen Hifuture Electric is currently generating about 0.25 per unit of volatility. If you would invest 229.00 in Shenzhen Hifuture Electric on August 24, 2024 and sell it today you would earn a total of 37.00 from holding Shenzhen Hifuture Electric or generate 16.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Life Insurance vs. Shenzhen Hifuture Electric
Performance |
| Timeline |
| China Life Insurance |
| Shenzhen Hifuture |
China Life and Shenzhen Hifuture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Life and Shenzhen Hifuture
The main advantage of trading using opposite China Life and Shenzhen Hifuture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Life position performs unexpectedly, Shenzhen Hifuture 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 Shenzhen Hifuture will offset losses from the drop in Shenzhen Hifuture's long position.| China Life vs. Xiamen Goldenhome Co | China Life vs. Tianjin Hi Tech Development | China Life vs. Zhejiang JIULI Hi tech | China Life vs. Guangdong Shenglu Telecommunication |
| Shenzhen Hifuture vs. Hengkang Medical Group | Shenzhen Hifuture vs. GKHT Medical Technology | Shenzhen Hifuture vs. Shanghai Jinfeng Wine | Shenzhen Hifuture vs. Chahua Modern Housewares |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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