Correlation Between China Life and Yankershop Food
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By analyzing existing cross correlation between China Life Insurance and Yankershop Food Co, you can compare the effects of market volatilities on China Life and Yankershop Food 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 Yankershop Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Life and Yankershop Food.
Diversification Opportunities for China Life and Yankershop Food
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Yankershop is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding China Life Insurance and Yankershop Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yankershop Food 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 Yankershop Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yankershop Food has no effect on the direction of China Life i.e., China Life and Yankershop Food go up and down completely randomly.
Pair Corralation between China Life and Yankershop Food
Assuming the 90 days trading horizon China Life Insurance is expected to generate 0.71 times more return on investment than Yankershop Food. However, China Life Insurance is 1.4 times less risky than Yankershop Food. It trades about 0.07 of its potential returns per unit of risk. Yankershop Food Co is currently generating about -0.42 per unit of risk. If you would invest 3,982 in China Life Insurance on November 3, 2024 and sell it today you would earn a total of 78.00 from holding China Life Insurance or generate 1.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Life Insurance vs. Yankershop Food Co
Performance |
| Timeline |
| China Life Insurance |
| Yankershop Food |
China Life and Yankershop Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Life and Yankershop Food
The main advantage of trading using opposite China Life and Yankershop Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Life position performs unexpectedly, Yankershop Food 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 Yankershop Food will offset losses from the drop in Yankershop Food's long position.| China Life vs. Shenzhen Noposion Agrochemicals | China Life vs. Shenyang Chemical Industry | China Life vs. Daoming OpticsChemical Co | China Life vs. Semiconductor Manufacturing Intl |
| Yankershop Food vs. China Longyuan Power | Yankershop Food vs. PetroChina Co Ltd | Yankershop Food vs. Guangxi Guiguan Electric | Yankershop Food vs. Yantai North Andre |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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