Correlation Between China Life and Qingdao Yunlu
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Life Insurance and Qingdao Yunlu Advanced, you can compare the effects of market volatilities on China Life and Qingdao Yunlu 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 Yunlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Life and Qingdao Yunlu.
Diversification Opportunities for China Life and Qingdao Yunlu
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Qingdao is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding China Life Insurance and Qingdao Yunlu Advanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Yunlu Advanced 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 Yunlu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Yunlu Advanced has no effect on the direction of China Life i.e., China Life and Qingdao Yunlu go up and down completely randomly.
Pair Corralation between China Life and Qingdao Yunlu
Assuming the 90 days trading horizon China Life Insurance is expected to generate 0.9 times more return on investment than Qingdao Yunlu. However, China Life Insurance is 1.11 times less risky than Qingdao Yunlu. It trades about -0.04 of its potential returns per unit of risk. Qingdao Yunlu Advanced is currently generating about -0.19 per unit of risk. If you would invest 4,519 in China Life Insurance on September 14, 2024 and sell it today you would lose (104.00) from holding China Life Insurance or give up 2.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
China Life Insurance vs. Qingdao Yunlu Advanced
Performance |
| Timeline |
| China Life Insurance |
| Qingdao Yunlu Advanced |
China Life and Qingdao Yunlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Life and Qingdao Yunlu
The main advantage of trading using opposite China Life and Qingdao Yunlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Life position performs unexpectedly, Qingdao Yunlu 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 Yunlu will offset losses from the drop in Qingdao Yunlu's long position.| China Life vs. BYD Co Ltd | China Life vs. China Mobile Limited | China Life vs. Agricultural Bank of | China Life vs. Industrial and Commercial |
| Qingdao Yunlu vs. Ming Yang Smart | Qingdao Yunlu vs. 159681 | Qingdao Yunlu vs. 159005 | Qingdao Yunlu vs. Loctek Ergonomic Technology |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |