Correlation Between China Life and Servyou Software
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By analyzing existing cross correlation between China Life Insurance and Servyou Software Group, you can compare the effects of market volatilities on China Life and Servyou Software 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 Servyou Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Life and Servyou Software.
Diversification Opportunities for China Life and Servyou Software
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and Servyou is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding China Life Insurance and Servyou Software Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Servyou Software 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 Servyou Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Servyou Software has no effect on the direction of China Life i.e., China Life and Servyou Software go up and down completely randomly.
Pair Corralation between China Life and Servyou Software
Assuming the 90 days trading horizon China Life Insurance is expected to generate 0.68 times more return on investment than Servyou Software. However, China Life Insurance is 1.47 times less risky than Servyou Software. It trades about 0.02 of its potential returns per unit of risk. Servyou Software Group is currently generating about -0.01 per unit of risk. If you would invest 3,430 in China Life Insurance on October 12, 2024 and sell it today you would earn a total of 336.00 from holding China Life Insurance or generate 9.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Life Insurance vs. Servyou Software Group
Performance |
| Timeline |
| China Life Insurance |
| Servyou Software |
China Life and Servyou Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Life and Servyou Software
The main advantage of trading using opposite China Life and Servyou Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Life position performs unexpectedly, Servyou Software 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 Servyou Software will offset losses from the drop in Servyou Software's long position.| China Life vs. Jointo Energy Investment | China Life vs. Hunan Investment Group | China Life vs. Nuode Investment Co | China Life vs. Hangzhou Minsheng Healthcare |
| Servyou Software vs. China Life Insurance | Servyou Software vs. Cinda Securities Co | Servyou Software vs. Piotech Inc A | Servyou Software 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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