Correlation Between China Life and Qingdao Hi
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By analyzing existing cross correlation between China Life Insurance and Qingdao Hi Tech Moulds, you can compare the effects of market volatilities on China Life and Qingdao Hi 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 Qingdao Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Life and Qingdao Hi.
Diversification Opportunities for China Life and Qingdao Hi
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Qingdao is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding China Life Insurance and Qingdao Hi Tech Moulds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Hi 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 Qingdao Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Hi Tech has no effect on the direction of China Life i.e., China Life and Qingdao Hi go up and down completely randomly.
Pair Corralation between China Life and Qingdao Hi
Assuming the 90 days trading horizon China Life Insurance is expected to generate 0.46 times more return on investment than Qingdao Hi. However, China Life Insurance is 2.19 times less risky than Qingdao Hi. It trades about 0.05 of its potential returns per unit of risk. Qingdao Hi Tech Moulds is currently generating about 0.01 per unit of risk. If you would invest 3,455 in China Life Insurance on September 12, 2024 and sell it today you would earn a total of 968.00 from holding China Life Insurance or generate 28.02% 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. Qingdao Hi Tech Moulds
Performance |
| Timeline |
| China Life Insurance |
| Qingdao Hi Tech |
China Life and Qingdao Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Life and Qingdao Hi
The main advantage of trading using opposite China Life and Qingdao Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Life position performs unexpectedly, Qingdao Hi 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 Qingdao Hi will offset losses from the drop in Qingdao Hi'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 |
| Qingdao Hi vs. Agricultural Bank of | Qingdao Hi vs. Industrial and Commercial | Qingdao Hi vs. Bank of China | Qingdao Hi vs. PetroChina Co Ltd |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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