Correlation Between China Life and Harbin Hatou
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By analyzing existing cross correlation between China Life Insurance and Harbin Hatou Investment, you can compare the effects of market volatilities on China Life and Harbin Hatou 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 Harbin Hatou. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Life and Harbin Hatou.
Diversification Opportunities for China Life and Harbin Hatou
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Harbin is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding China Life Insurance and Harbin Hatou Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbin Hatou Investment 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 Harbin Hatou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbin Hatou Investment has no effect on the direction of China Life i.e., China Life and Harbin Hatou go up and down completely randomly.
Pair Corralation between China Life and Harbin Hatou
Assuming the 90 days trading horizon China Life is expected to generate 1.59 times less return on investment than Harbin Hatou. But when comparing it to its historical volatility, China Life Insurance is 1.22 times less risky than Harbin Hatou. It trades about 0.03 of its potential returns per unit of risk. Harbin Hatou Investment is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 494.00 in Harbin Hatou Investment on September 3, 2024 and sell it today you would earn a total of 178.00 from holding Harbin Hatou Investment or generate 36.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Life Insurance vs. Harbin Hatou Investment
Performance |
| Timeline |
| China Life Insurance |
| Harbin Hatou Investment |
China Life and Harbin Hatou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Life and Harbin Hatou
The main advantage of trading using opposite China Life and Harbin Hatou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Life position performs unexpectedly, Harbin Hatou 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 Harbin Hatou will offset losses from the drop in Harbin Hatou's long position.| China Life vs. Chongqing Road Bridge | China Life vs. Wuhan Xianglong Power | China Life vs. Empyrean Technology Co | China Life vs. Yuanjie Semiconductor Technology |
| Harbin Hatou vs. Linewell Software Co | Harbin Hatou vs. Maxvision Technology Corp | Harbin Hatou vs. Sportsoul Co Ltd | Harbin Hatou vs. Hubei Forbon 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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