Correlation Between China Life and Qingdao Haier
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By analyzing existing cross correlation between China Life Insurance and Qingdao Haier Biomedical, you can compare the effects of market volatilities on China Life and Qingdao Haier 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 Qingdao Haier. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Life and Qingdao Haier.
Diversification Opportunities for China Life and Qingdao Haier
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Qingdao is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding China Life Insurance and Qingdao Haier Biomedical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Haier Biomedical 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 Qingdao Haier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Haier Biomedical has no effect on the direction of China Life i.e., China Life and Qingdao Haier go up and down completely randomly.
Pair Corralation between China Life and Qingdao Haier
Assuming the 90 days trading horizon China Life is expected to generate 26.35 times less return on investment than Qingdao Haier. In addition to that, China Life is 1.13 times more volatile than Qingdao Haier Biomedical. It trades about 0.0 of its total potential returns per unit of risk. Qingdao Haier Biomedical is currently generating about 0.13 per unit of volatility. If you would invest 3,142 in Qingdao Haier Biomedical on September 4, 2024 and sell it today you would earn a total of 232.00 from holding Qingdao Haier Biomedical or generate 7.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Life Insurance vs. Qingdao Haier Biomedical
Performance |
| Timeline |
| China Life Insurance |
| Qingdao Haier Biomedical |
China Life and Qingdao Haier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Life and Qingdao Haier
The main advantage of trading using opposite China Life and Qingdao Haier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Life position performs unexpectedly, Qingdao Haier 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 Qingdao Haier will offset losses from the drop in Qingdao Haier's long position.| China Life vs. Beijing Kaiwen Education | China Life vs. Shanghai Action Education | China Life vs. Chengtun Mining Group | China Life vs. Zhejiang Publishing Media |
| Qingdao Haier vs. Servyou Software Group | Qingdao Haier vs. Gan Yuan Foods | Qingdao Haier vs. China National Software | Qingdao Haier vs. JuneYao Dairy 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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