Correlation Between China Life and Gan Yuan
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Life Insurance and Gan Yuan Foods, you can compare the effects of market volatilities on China Life and Gan Yuan 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 Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Life and Gan Yuan.
Diversification Opportunities for China Life and Gan Yuan
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and Gan is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding China Life Insurance and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan Foods 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 Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of China Life i.e., China Life and Gan Yuan go up and down completely randomly.
Pair Corralation between China Life and Gan Yuan
Assuming the 90 days trading horizon China Life Insurance is expected to generate 0.59 times more return on investment than Gan Yuan. However, China Life Insurance is 1.71 times less risky than Gan Yuan. It trades about 0.07 of its potential returns per unit of risk. Gan Yuan Foods is currently generating about -0.07 per unit of risk. If you would invest 3,982 in China Life Insurance on November 2, 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Life Insurance vs. Gan Yuan Foods
Performance |
| Timeline |
| China Life Insurance |
| Gan Yuan Foods |
China Life and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Life and Gan Yuan
The main advantage of trading using opposite China Life and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Life position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan's long position.| China Life vs. Allmed Medical Products | China Life vs. Financial Street Holdings | China Life vs. Zhonghong Pulin Medical | China Life vs. Peoples Insurance of |
| Gan Yuan vs. Xinjiang Baodi Mining | Gan Yuan vs. Guangzhou Jointas Chemical | Gan Yuan vs. Ningbo Fujia Industrial | Gan Yuan vs. Shenzhen Noposion Agrochemicals |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |