Correlation Between China Life and Xiamen ITG
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Life Insurance and Xiamen ITG Group, you can compare the effects of market volatilities on China Life and Xiamen ITG 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 Xiamen ITG. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Life and Xiamen ITG.
Diversification Opportunities for China Life and Xiamen ITG
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Xiamen is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding China Life Insurance and Xiamen ITG Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen ITG Group 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 Xiamen ITG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen ITG Group has no effect on the direction of China Life i.e., China Life and Xiamen ITG go up and down completely randomly.
Pair Corralation between China Life and Xiamen ITG
Assuming the 90 days trading horizon China Life Insurance is expected to generate 1.44 times more return on investment than Xiamen ITG. However, China Life is 1.44 times more volatile than Xiamen ITG Group. It trades about 0.03 of its potential returns per unit of risk. Xiamen ITG Group is currently generating about 0.03 per unit of risk. If you would invest 4,231 in China Life Insurance on September 28, 2024 and sell it today you would earn a total of 39.00 from holding China Life Insurance or generate 0.92% 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. Xiamen ITG Group
Performance |
| Timeline |
| China Life Insurance |
| Xiamen ITG Group |
China Life and Xiamen ITG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Life and Xiamen ITG
The main advantage of trading using opposite China Life and Xiamen ITG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Life position performs unexpectedly, Xiamen ITG 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 Xiamen ITG will offset losses from the drop in Xiamen ITG'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 |
| Xiamen ITG vs. China Life Insurance | Xiamen ITG vs. Cinda Securities Co | Xiamen ITG vs. Piotech Inc A | Xiamen ITG 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |