Correlation Between China Life and Beijing Lanxum
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By analyzing existing cross correlation between China Life Insurance and Beijing Lanxum Tech, you can compare the effects of market volatilities on China Life and Beijing Lanxum 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 Lanxum. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Life and Beijing Lanxum.
Diversification Opportunities for China Life and Beijing Lanxum
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Beijing is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding China Life Insurance and Beijing Lanxum Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Lanxum Tech 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 Lanxum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Lanxum Tech has no effect on the direction of China Life i.e., China Life and Beijing Lanxum go up and down completely randomly.
Pair Corralation between China Life and Beijing Lanxum
Assuming the 90 days trading horizon China Life is expected to generate 8.11 times less return on investment than Beijing Lanxum. But when comparing it to its historical volatility, China Life Insurance is 2.69 times less risky than Beijing Lanxum. It trades about 0.0 of its potential returns per unit of risk. Beijing Lanxum Tech is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,080 in Beijing Lanxum Tech on September 4, 2024 and sell it today you would lose (59.00) from holding Beijing Lanxum Tech or give up 5.46% 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. Beijing Lanxum Tech
Performance |
| Timeline |
| China Life Insurance |
| Beijing Lanxum Tech |
China Life and Beijing Lanxum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Life and Beijing Lanxum
The main advantage of trading using opposite China Life and Beijing Lanxum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Life position performs unexpectedly, Beijing Lanxum 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 Lanxum will offset losses from the drop in Beijing Lanxum's long position.| China Life vs. Beijing Kaiwen Education | China Life vs. Shanghai Action Education | China Life vs. Chengtun Mining Group | China Life vs. Zhejiang Publishing Media |
| Beijing Lanxum vs. Ciwen Media Co | Beijing Lanxum vs. Lander Sports Development | Beijing Lanxum vs. JiShi Media Co | Beijing Lanxum vs. Dalian Zeus Entertainment |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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