Correlation Between China Life and Kangyue Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Life Insurance and Kangyue Technology Co, you can compare the effects of market volatilities on China Life and Kangyue Technology 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 Kangyue Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Life and Kangyue Technology.
Diversification Opportunities for China Life and Kangyue Technology
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Kangyue is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding China Life Insurance and Kangyue Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangyue Technology 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 Kangyue Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangyue Technology has no effect on the direction of China Life i.e., China Life and Kangyue Technology go up and down completely randomly.
Pair Corralation between China Life and Kangyue Technology
Assuming the 90 days trading horizon China Life Insurance is expected to under-perform the Kangyue Technology. But the stock apears to be less risky and, when comparing its historical volatility, China Life Insurance is 3.04 times less risky than Kangyue Technology. The stock trades about -0.13 of its potential returns per unit of risk. The Kangyue Technology Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 678.00 in Kangyue Technology Co on September 12, 2024 and sell it today you would earn a total of 7.00 from holding Kangyue Technology Co or generate 1.03% 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. Kangyue Technology Co
Performance |
| Timeline |
| China Life Insurance |
| Kangyue Technology |
China Life and Kangyue Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Life and Kangyue Technology
The main advantage of trading using opposite China Life and Kangyue Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Life position performs unexpectedly, Kangyue Technology 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 Kangyue Technology will offset losses from the drop in Kangyue Technology'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 |
| Kangyue Technology vs. China Asset Management | Kangyue Technology vs. Tongyu Communication | Kangyue Technology vs. Chengdu Spaceon Electronics | Kangyue Technology vs. JCHX Mining Management |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| CEOs Directory Screen CEOs from public companies around the world |