Correlation Between China Life and Beijing Jiaman
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By analyzing existing cross correlation between China Life Insurance and Beijing Jiaman Dress, you can compare the effects of market volatilities on China Life and Beijing Jiaman 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 Jiaman. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Life and Beijing Jiaman.
Diversification Opportunities for China Life and Beijing Jiaman
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Beijing is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding China Life Insurance and Beijing Jiaman Dress in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Jiaman Dress 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 Jiaman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Jiaman Dress has no effect on the direction of China Life i.e., China Life and Beijing Jiaman go up and down completely randomly.
Pair Corralation between China Life and Beijing Jiaman
Assuming the 90 days trading horizon China Life Insurance is expected to generate 0.88 times more return on investment than Beijing Jiaman. However, China Life Insurance is 1.14 times less risky than Beijing Jiaman. It trades about 0.03 of its potential returns per unit of risk. Beijing Jiaman Dress is currently generating about 0.0 per unit of risk. If you would invest 3,703 in China Life Insurance on September 4, 2024 and sell it today you would earn a total of 548.00 from holding China Life Insurance or generate 14.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Life Insurance vs. Beijing Jiaman Dress
Performance |
| Timeline |
| China Life Insurance |
| Beijing Jiaman Dress |
China Life and Beijing Jiaman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Life and Beijing Jiaman
The main advantage of trading using opposite China Life and Beijing Jiaman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Life position performs unexpectedly, Beijing Jiaman 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 Jiaman will offset losses from the drop in Beijing Jiaman'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 Jiaman vs. Huatian Hotel Group | Beijing Jiaman vs. Dezhan HealthCare Co | Beijing Jiaman vs. Shanghai Yaoji Playing | Beijing Jiaman vs. Impulse Qingdao Health |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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