Correlation Between China Life and China Fortune
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Life Insurance and China Fortune Land, you can compare the effects of market volatilities on China Life and China Fortune 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 Fortune. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Life and China Fortune.
Diversification Opportunities for China Life and China Fortune
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and China is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding China Life Insurance and China Fortune Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Fortune Land 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 Fortune. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Fortune Land has no effect on the direction of China Life i.e., China Life and China Fortune go up and down completely randomly.
Pair Corralation between China Life and China Fortune
Assuming the 90 days trading horizon China Life Insurance is expected to under-perform the China Fortune. But the stock apears to be less risky and, when comparing its historical volatility, China Life Insurance is 3.39 times less risky than China Fortune. The stock trades about -0.1 of its potential returns per unit of risk. The China Fortune Land is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 326.00 in China Fortune Land on September 13, 2024 and sell it today you would earn a total of 44.00 from holding China Fortune Land or generate 13.5% 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. China Fortune Land
Performance |
| Timeline |
| China Life Insurance |
| China Fortune Land |
China Life and China Fortune Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Life and China Fortune
The main advantage of trading using opposite China Life and China Fortune positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Life position performs unexpectedly, China Fortune 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 Fortune will offset losses from the drop in China Fortune's long position.| China Life vs. BYD Co Ltd | China Life vs. China Mobile Limited | China Life vs. Agricultural Bank of | China Life vs. Industrial and Commercial |
| China Fortune vs. China Life Insurance | China Fortune vs. Cinda Securities Co | China Fortune vs. Piotech Inc A | China Fortune vs. Dongxing Sec Co |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Stocks Directory Find actively traded stocks across global markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |