Correlation Between China Life and Heilongjiang Transport
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Life Insurance and Heilongjiang Transport Development, you can compare the effects of market volatilities on China Life and Heilongjiang Transport 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 Heilongjiang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Life and Heilongjiang Transport.
Diversification Opportunities for China Life and Heilongjiang Transport
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Heilongjiang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding China Life Insurance and Heilongjiang Transport Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Transport 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 Heilongjiang Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Transport has no effect on the direction of China Life i.e., China Life and Heilongjiang Transport go up and down completely randomly.
Pair Corralation between China Life and Heilongjiang Transport
Assuming the 90 days trading horizon China Life is expected to generate 4.05 times less return on investment than Heilongjiang Transport. In addition to that, China Life is 1.89 times more volatile than Heilongjiang Transport Development. It trades about 0.02 of its total potential returns per unit of risk. Heilongjiang Transport Development is currently generating about 0.18 per unit of volatility. If you would invest 371.00 in Heilongjiang Transport Development on September 5, 2024 and sell it today you would earn a total of 25.00 from holding Heilongjiang Transport Development or generate 6.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Life Insurance vs. Heilongjiang Transport Develop
Performance |
| Timeline |
| China Life Insurance |
| Heilongjiang Transport |
China Life and Heilongjiang Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Life and Heilongjiang Transport
The main advantage of trading using opposite China Life and Heilongjiang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Life position performs unexpectedly, Heilongjiang Transport 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 Heilongjiang Transport will offset losses from the drop in Heilongjiang Transport's long position.| China Life vs. Fujian Oriental Silver | China Life vs. Humanwell Healthcare Group | China Life vs. Chenzhou Jingui Silver | China Life vs. Jiangxi Naipu Mining |
| Heilongjiang Transport vs. China Life Insurance | Heilongjiang Transport vs. Cinda Securities Co | Heilongjiang Transport vs. Piotech Inc A | Heilongjiang Transport 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |