Correlation Between China Life and Grandblue Environment
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By analyzing existing cross correlation between China Life Insurance and Grandblue Environment Co, you can compare the effects of market volatilities on China Life and Grandblue Environment 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 Grandblue Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Life and Grandblue Environment.
Diversification Opportunities for China Life and Grandblue Environment
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Grandblue is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding China Life Insurance and Grandblue Environment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grandblue Environment 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 Grandblue Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grandblue Environment has no effect on the direction of China Life i.e., China Life and Grandblue Environment go up and down completely randomly.
Pair Corralation between China Life and Grandblue Environment
Assuming the 90 days trading horizon China Life Insurance is expected to generate 1.43 times more return on investment than Grandblue Environment. However, China Life is 1.43 times more volatile than Grandblue Environment Co. It trades about 0.09 of its potential returns per unit of risk. Grandblue Environment Co is currently generating about 0.09 per unit of risk. If you would invest 2,799 in China Life Insurance on September 25, 2024 and sell it today you would earn a total of 1,355 from holding China Life Insurance or generate 48.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Life Insurance vs. Grandblue Environment Co
Performance |
| Timeline |
| China Life Insurance |
| Grandblue Environment |
China Life and Grandblue Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Life and Grandblue Environment
The main advantage of trading using opposite China Life and Grandblue Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Life position performs unexpectedly, Grandblue Environment 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 Grandblue Environment will offset losses from the drop in Grandblue Environment's long position.| China Life vs. Kweichow Moutai Co | China Life vs. Shenzhen Mindray Bio Medical | China Life vs. Jiangsu Pacific Quartz | China Life vs. G bits Network Technology |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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