Correlation Between China Life and China Satellite
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Life Insurance and China Satellite Communications, you can compare the effects of market volatilities on China Life and China Satellite 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 China Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Life and China Satellite.
Diversification Opportunities for China Life and China Satellite
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and China is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding China Life Insurance and China Satellite Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Satellite Comm 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 China Satellite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Satellite Comm has no effect on the direction of China Life i.e., China Life and China Satellite go up and down completely randomly.
Pair Corralation between China Life and China Satellite
Assuming the 90 days trading horizon China Life is expected to generate 21.96 times less return on investment than China Satellite. But when comparing it to its historical volatility, China Life Insurance is 1.95 times less risky than China Satellite. It trades about 0.02 of its potential returns per unit of risk. China Satellite Communications is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 1,700 in China Satellite Communications on September 1, 2024 and sell it today you would earn a total of 617.00 from holding China Satellite Communications or generate 36.29% 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. China Satellite Communications
Performance |
| Timeline |
| China Life Insurance |
| China Satellite Comm |
China Life and China Satellite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Life and China Satellite
The main advantage of trading using opposite China Life and China Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Life position performs unexpectedly, China Satellite 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 China Satellite will offset losses from the drop in China Satellite's long position.| China Life vs. Industrial and Commercial | China Life vs. China Construction Bank | China Life vs. Bank of China | China Life vs. Agricultural Bank of |
| China Satellite vs. Qingdao Choho Industrial | China Satellite vs. Ye Chiu Metal | China Satellite vs. Shenzhen Kexin Communication | China Satellite vs. Haima Automobile 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |