Correlation Between China Life and Peoples Insurance
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By analyzing existing cross correlation between China Life Insurance and Peoples Insurance of, you can compare the effects of market volatilities on China Life and Peoples Insurance 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 Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Life and Peoples Insurance.
Diversification Opportunities for China Life and Peoples Insurance
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between China and Peoples is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding China Life Insurance and Peoples Insurance of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance 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 Peoples Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peoples Insurance has no effect on the direction of China Life i.e., China Life and Peoples Insurance go up and down completely randomly.
Pair Corralation between China Life and Peoples Insurance
Assuming the 90 days trading horizon China Life Insurance is expected to under-perform the Peoples Insurance. In addition to that, China Life is 1.39 times more volatile than Peoples Insurance of. It trades about -0.05 of its total potential returns per unit of risk. Peoples Insurance of is currently generating about -0.03 per unit of volatility. If you would invest 726.00 in Peoples Insurance of on August 29, 2024 and sell it today you would lose (15.00) from holding Peoples Insurance of or give up 2.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Life Insurance vs. Peoples Insurance of
Performance |
| Timeline |
| China Life Insurance |
| Peoples Insurance |
China Life and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Life and Peoples Insurance
The main advantage of trading using opposite China Life and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Life position performs unexpectedly, Peoples Insurance 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 Peoples Insurance will offset losses from the drop in Peoples Insurance's long position.| China Life vs. Ming Yang Smart | China Life vs. 159681 | China Life vs. 159005 | China Life vs. Loctek Ergonomic Technology |
| Peoples Insurance vs. PetroChina Co Ltd | Peoples Insurance vs. China Mobile Limited | Peoples Insurance vs. CNOOC Limited | Peoples Insurance vs. Ping An Insurance |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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