Correlation Between China Life and Dynagreen Environmental
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By analyzing existing cross correlation between China Life Insurance and Dynagreen Environmental Protection, you can compare the effects of market volatilities on China Life and Dynagreen Environmental 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 Dynagreen Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Life and Dynagreen Environmental.
Diversification Opportunities for China Life and Dynagreen Environmental
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Dynagreen is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding China Life Insurance and Dynagreen Environmental Protec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dynagreen Environmental 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 Dynagreen Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dynagreen Environmental has no effect on the direction of China Life i.e., China Life and Dynagreen Environmental go up and down completely randomly.
Pair Corralation between China Life and Dynagreen Environmental
Assuming the 90 days trading horizon China Life Insurance is expected to generate 1.05 times more return on investment than Dynagreen Environmental. However, China Life is 1.05 times more volatile than Dynagreen Environmental Protection. It trades about -0.22 of its potential returns per unit of risk. Dynagreen Environmental Protection is currently generating about -0.23 per unit of risk. If you would invest 4,135 in China Life Insurance on October 17, 2024 and sell it today you would lose (320.00) from holding China Life Insurance or give up 7.74% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
China Life Insurance vs. Dynagreen Environmental Protec
Performance |
Timeline |
China Life Insurance |
Dynagreen Environmental |
China Life and Dynagreen Environmental Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Life and Dynagreen Environmental
The main advantage of trading using opposite China Life and Dynagreen Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Life position performs unexpectedly, Dynagreen Environmental 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 Dynagreen Environmental will offset losses from the drop in Dynagreen Environmental's long position.China Life vs. Tieling Newcity Investment | China Life vs. Henan Shuanghui Investment | China Life vs. Xiandai Investment Co | China Life vs. BTG Hotels Group |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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