Correlation Between China Life and Inner Mongolia
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Life Insurance and Inner Mongolia BaoTou, you can compare the effects of market volatilities on China Life and Inner Mongolia 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 Inner Mongolia. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Life and Inner Mongolia.
Diversification Opportunities for China Life and Inner Mongolia
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Inner is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding China Life Insurance and Inner Mongolia BaoTou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inner Mongolia BaoTou 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 Inner Mongolia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inner Mongolia BaoTou has no effect on the direction of China Life i.e., China Life and Inner Mongolia go up and down completely randomly.
Pair Corralation between China Life and Inner Mongolia
Assuming the 90 days trading horizon China Life Insurance is expected to generate 1.12 times more return on investment than Inner Mongolia. However, China Life is 1.12 times more volatile than Inner Mongolia BaoTou. It trades about -0.34 of its potential returns per unit of risk. Inner Mongolia BaoTou is currently generating about -0.44 per unit of risk. If you would invest 4,215 in China Life Insurance on October 14, 2024 and sell it today you would lose (449.00) from holding China Life Insurance or give up 10.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Life Insurance vs. Inner Mongolia BaoTou
Performance |
| Timeline |
| China Life Insurance |
| Inner Mongolia BaoTou |
China Life and Inner Mongolia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Life and Inner Mongolia
The main advantage of trading using opposite China Life and Inner Mongolia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Life position performs unexpectedly, Inner Mongolia 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 Inner Mongolia will offset losses from the drop in Inner Mongolia's long position.| China Life vs. State Grid InformationCommunication | China Life vs. Bank of Communications | China Life vs. Anji Foodstuff Co | China Life vs. Wintao Communications Co |
| Inner Mongolia vs. Eit Environmental Development | Inner Mongolia vs. China Life Insurance | Inner Mongolia vs. Penyao Environmental Protection | Inner Mongolia vs. Qiaoyin Environmental Tech |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Stocks Directory Find actively traded stocks across global markets |