Correlation Between China Life and Zhejiang Kingland
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Life Insurance and Zhejiang Kingland Pipeline, you can compare the effects of market volatilities on China Life and Zhejiang Kingland 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 Zhejiang Kingland. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Life and Zhejiang Kingland.
Diversification Opportunities for China Life and Zhejiang Kingland
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Zhejiang is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding China Life Insurance and Zhejiang Kingland Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Kingland 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 Zhejiang Kingland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Kingland has no effect on the direction of China Life i.e., China Life and Zhejiang Kingland go up and down completely randomly.
Pair Corralation between China Life and Zhejiang Kingland
Assuming the 90 days trading horizon China Life Insurance is expected to generate 1.16 times more return on investment than Zhejiang Kingland. However, China Life is 1.16 times more volatile than Zhejiang Kingland Pipeline. It trades about -0.34 of its potential returns per unit of risk. Zhejiang Kingland Pipeline is currently generating about -0.43 per unit of risk. If you would invest 4,215 in China Life Insurance on October 14, 2024 and sell it today you would lose (449.00) from holding China Life Insurance or give up 10.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Life Insurance vs. Zhejiang Kingland Pipeline
Performance |
| Timeline |
| China Life Insurance |
| Zhejiang Kingland |
China Life and Zhejiang Kingland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Life and Zhejiang Kingland
The main advantage of trading using opposite China Life and Zhejiang Kingland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Life position performs unexpectedly, Zhejiang Kingland 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 Zhejiang Kingland will offset losses from the drop in Zhejiang Kingland's long position.| China Life vs. State Grid InformationCommunication | China Life vs. Bank of Communications | China Life vs. Anji Foodstuff Co | China Life vs. Wintao Communications Co |
| Zhejiang Kingland vs. Kunwu Jiuding Investment | Zhejiang Kingland vs. China Life Insurance | Zhejiang Kingland vs. Dazhong Transportation Group | Zhejiang Kingland vs. Shanghai Material Trading |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |