Correlation Between China Life and Miracll Chemicals
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By analyzing existing cross correlation between China Life Insurance and Miracll Chemicals Co, you can compare the effects of market volatilities on China Life and Miracll Chemicals 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 Miracll Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Life and Miracll Chemicals.
Diversification Opportunities for China Life and Miracll Chemicals
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Miracll is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding China Life Insurance and Miracll Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miracll Chemicals 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 Miracll Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Miracll Chemicals has no effect on the direction of China Life i.e., China Life and Miracll Chemicals go up and down completely randomly.
Pair Corralation between China Life and Miracll Chemicals
Assuming the 90 days trading horizon China Life is expected to generate 6.46 times less return on investment than Miracll Chemicals. But when comparing it to its historical volatility, China Life Insurance is 1.41 times less risky than Miracll Chemicals. It trades about 0.02 of its potential returns per unit of risk. Miracll Chemicals Co is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,715 in Miracll Chemicals Co on September 1, 2024 and sell it today you would earn a total of 148.00 from holding Miracll Chemicals Co or generate 8.63% 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. Miracll Chemicals Co
Performance |
| Timeline |
| China Life Insurance |
| Miracll Chemicals |
China Life and Miracll Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Life and Miracll Chemicals
The main advantage of trading using opposite China Life and Miracll Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Life position performs unexpectedly, Miracll Chemicals 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 Miracll Chemicals will offset losses from the drop in Miracll Chemicals' long position.| China Life vs. Industrial and Commercial | China Life vs. China Construction Bank | China Life vs. Bank of China | China Life vs. Agricultural Bank of |
| Miracll Chemicals vs. Zijin Mining Group | Miracll Chemicals vs. Baoshan Iron Steel | Miracll Chemicals vs. Shandong Gold Mining | Miracll Chemicals vs. Rongsheng Petrochemical Co |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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