Correlation Between China Life and China Minsheng
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By analyzing existing cross correlation between China Life Insurance and China Minsheng Banking, you can compare the effects of market volatilities on China Life and China Minsheng 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 China Minsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Life and China Minsheng.
Diversification Opportunities for China Life and China Minsheng
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and China is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding China Life Insurance and China Minsheng Banking in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Minsheng Banking 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 China Minsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Minsheng Banking has no effect on the direction of China Life i.e., China Life and China Minsheng go up and down completely randomly.
Pair Corralation between China Life and China Minsheng
Assuming the 90 days trading horizon China Life Insurance is expected to generate 1.48 times more return on investment than China Minsheng. However, China Life is 1.48 times more volatile than China Minsheng Banking. It trades about 0.11 of its potential returns per unit of risk. China Minsheng Banking is currently generating about 0.02 per unit of risk. If you would invest 3,158 in China Life Insurance on September 1, 2024 and sell it today you would earn a total of 1,052 from holding China Life Insurance or generate 33.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.19% |
| Values | Daily Returns |
China Life Insurance vs. China Minsheng Banking
Performance |
| Timeline |
| China Life Insurance |
| China Minsheng Banking |
China Life and China Minsheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Life and China Minsheng
The main advantage of trading using opposite China Life and China Minsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Life position performs unexpectedly, China Minsheng 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 China Minsheng will offset losses from the drop in China Minsheng's 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 |
| China Minsheng vs. V V Food | China Minsheng vs. Juewei Food Co | China Minsheng vs. 360 Security Technology | China Minsheng vs. Guangdong Xiongsu Technology |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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