Correlation Between China Life and Guangzhou KingTeller
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By analyzing existing cross correlation between China Life Insurance and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on China Life and Guangzhou KingTeller 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 Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Life and Guangzhou KingTeller.
Diversification Opportunities for China Life and Guangzhou KingTeller
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Guangzhou is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding China Life Insurance and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller 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 Guangzhou KingTeller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou KingTeller has no effect on the direction of China Life i.e., China Life and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between China Life and Guangzhou KingTeller
Assuming the 90 days trading horizon China Life is expected to generate 1.34 times less return on investment than Guangzhou KingTeller. But when comparing it to its historical volatility, China Life Insurance is 1.7 times less risky than Guangzhou KingTeller. It trades about 0.09 of its potential returns per unit of risk. Guangzhou KingTeller Technology is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 341.00 in Guangzhou KingTeller Technology on October 30, 2024 and sell it today you would earn a total of 117.00 from holding Guangzhou KingTeller Technology or generate 34.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Life Insurance vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| China Life Insurance |
| Guangzhou KingTeller |
China Life and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Life and Guangzhou KingTeller
The main advantage of trading using opposite China Life and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Life position performs unexpectedly, Guangzhou KingTeller 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 Guangzhou KingTeller will offset losses from the drop in Guangzhou KingTeller's long position.| China Life vs. BizConf Telecom Co | China Life vs. Shenzhen Zhongzhuang Construction | China Life vs. Agricultural Bank of | China Life vs. Wintao Communications Co |
| Guangzhou KingTeller vs. Ping An Insurance | Guangzhou KingTeller vs. Anhui Huaren Health | Guangzhou KingTeller vs. Shandong Hongchuang Aluminum | Guangzhou KingTeller vs. Shanghai Yanpu Metal |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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