Correlation Between China Life and Impulse Qingdao
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By analyzing existing cross correlation between China Life Insurance and Impulse Qingdao Health, you can compare the effects of market volatilities on China Life and Impulse Qingdao 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 Impulse Qingdao. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Life and Impulse Qingdao.
Diversification Opportunities for China Life and Impulse Qingdao
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Impulse is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding China Life Insurance and Impulse Qingdao Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impulse Qingdao Health 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 Impulse Qingdao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impulse Qingdao Health has no effect on the direction of China Life i.e., China Life and Impulse Qingdao go up and down completely randomly.
Pair Corralation between China Life and Impulse Qingdao
Assuming the 90 days trading horizon China Life Insurance is expected to under-perform the Impulse Qingdao. But the stock apears to be less risky and, when comparing its historical volatility, China Life Insurance is 1.22 times less risky than Impulse Qingdao. The stock trades about -0.01 of its potential returns per unit of risk. The Impulse Qingdao Health is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,871 in Impulse Qingdao Health on September 3, 2024 and sell it today you would earn a total of 208.00 from holding Impulse Qingdao Health or generate 11.12% 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. Impulse Qingdao Health
Performance |
| Timeline |
| China Life Insurance |
| Impulse Qingdao Health |
China Life and Impulse Qingdao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Life and Impulse Qingdao
The main advantage of trading using opposite China Life and Impulse Qingdao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Life position performs unexpectedly, Impulse Qingdao 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 Impulse Qingdao will offset losses from the drop in Impulse Qingdao's long position.| China Life vs. Chongqing Road Bridge | China Life vs. Wuhan Xianglong Power | China Life vs. Empyrean Technology Co | China Life vs. Yuanjie Semiconductor Technology |
| Impulse Qingdao vs. PetroChina Co Ltd | Impulse Qingdao vs. China Mobile Limited | Impulse Qingdao vs. Industrial and Commercial | Impulse Qingdao vs. China Life Insurance |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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