Correlation Between China Life and Lootom Telcovideo
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By analyzing existing cross correlation between China Life Insurance and Lootom Telcovideo Network, you can compare the effects of market volatilities on China Life and Lootom Telcovideo 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 Lootom Telcovideo. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Life and Lootom Telcovideo.
Diversification Opportunities for China Life and Lootom Telcovideo
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Lootom is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding China Life Insurance and Lootom Telcovideo Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lootom Telcovideo Network 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 Lootom Telcovideo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lootom Telcovideo Network has no effect on the direction of China Life i.e., China Life and Lootom Telcovideo go up and down completely randomly.
Pair Corralation between China Life and Lootom Telcovideo
Assuming the 90 days trading horizon China Life Insurance is expected to under-perform the Lootom Telcovideo. But the stock apears to be less risky and, when comparing its historical volatility, China Life Insurance is 1.13 times less risky than Lootom Telcovideo. The stock trades about -0.01 of its potential returns per unit of risk. The Lootom Telcovideo Network is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 790.00 in Lootom Telcovideo Network on September 3, 2024 and sell it today you would earn a total of 71.00 from holding Lootom Telcovideo Network or generate 8.99% 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. Lootom Telcovideo Network
Performance |
| Timeline |
| China Life Insurance |
| Lootom Telcovideo Network |
China Life and Lootom Telcovideo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Life and Lootom Telcovideo
The main advantage of trading using opposite China Life and Lootom Telcovideo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Life position performs unexpectedly, Lootom Telcovideo 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 Lootom Telcovideo will offset losses from the drop in Lootom Telcovideo'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 |
| Lootom Telcovideo vs. Agricultural Bank of | Lootom Telcovideo vs. China Construction Bank | Lootom Telcovideo vs. Postal Savings Bank | Lootom Telcovideo vs. Bank of Communications |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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