Correlation Between China Life and Beijing Kaiwen
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By analyzing existing cross correlation between China Life Insurance and Beijing Kaiwen Education, you can compare the effects of market volatilities on China Life and Beijing Kaiwen 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 Kaiwen. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Life and Beijing Kaiwen.
Diversification Opportunities for China Life and Beijing Kaiwen
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Beijing is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding China Life Insurance and Beijing Kaiwen Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Kaiwen Education 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 Kaiwen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Kaiwen Education has no effect on the direction of China Life i.e., China Life and Beijing Kaiwen go up and down completely randomly.
Pair Corralation between China Life and Beijing Kaiwen
Assuming the 90 days trading horizon China Life is expected to generate 1.23 times less return on investment than Beijing Kaiwen. But when comparing it to its historical volatility, China Life Insurance is 1.61 times less risky than Beijing Kaiwen. It trades about 0.05 of its potential returns per unit of risk. Beijing Kaiwen Education is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 445.00 in Beijing Kaiwen Education on September 12, 2024 and sell it today you would earn a total of 104.00 from holding Beijing Kaiwen Education or generate 23.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Life Insurance vs. Beijing Kaiwen Education
Performance |
| Timeline |
| China Life Insurance |
| Beijing Kaiwen Education |
China Life and Beijing Kaiwen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Life and Beijing Kaiwen
The main advantage of trading using opposite China Life and Beijing Kaiwen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Life position performs unexpectedly, Beijing Kaiwen 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 Kaiwen will offset losses from the drop in Beijing Kaiwen's long position.| China Life vs. China Petroleum Chemical | China Life vs. PetroChina Co Ltd | China Life vs. China Mobile Limited | China Life vs. Industrial and Commercial |
| Beijing Kaiwen vs. Agricultural Bank of | Beijing Kaiwen vs. Industrial and Commercial | Beijing Kaiwen vs. Bank of China | Beijing Kaiwen vs. PetroChina Co Ltd |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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