Correlation Between China Life and 37 Interactive
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By analyzing existing cross correlation between China Life Insurance and 37 Interactive Entertainment, you can compare the effects of market volatilities on China Life and 37 Interactive 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 37 Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Life and 37 Interactive.
Diversification Opportunities for China Life and 37 Interactive
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and 002555 is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding China Life Insurance and 37 Interactive Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 37 Interactive Enter 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 37 Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 37 Interactive Enter has no effect on the direction of China Life i.e., China Life and 37 Interactive go up and down completely randomly.
Pair Corralation between China Life and 37 Interactive
Assuming the 90 days trading horizon China Life Insurance is expected to generate 0.87 times more return on investment than 37 Interactive. However, China Life Insurance is 1.15 times less risky than 37 Interactive. It trades about -0.3 of its potential returns per unit of risk. 37 Interactive Entertainment is currently generating about -0.41 per unit of risk. If you would invest 4,135 in China Life Insurance on October 15, 2024 and sell it today you would lose (369.00) from holding China Life Insurance or give up 8.92% 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. 37 Interactive Entertainment
Performance |
| Timeline |
| China Life Insurance |
| 37 Interactive Enter |
China Life and 37 Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Life and 37 Interactive
The main advantage of trading using opposite China Life and 37 Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Life position performs unexpectedly, 37 Interactive 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 37 Interactive will offset losses from the drop in 37 Interactive'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 |
| 37 Interactive vs. Everdisplay Optronics Shanghai | 37 Interactive vs. SSAW Hotels Resorts | 37 Interactive vs. Anhui Jianghuai Automobile | 37 Interactive vs. Tongyu Communication |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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