Correlation Between China Life and Yuanjie Semiconductor
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By analyzing existing cross correlation between China Life Insurance and Yuanjie Semiconductor Technology, you can compare the effects of market volatilities on China Life and Yuanjie Semiconductor 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 Yuanjie Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Life and Yuanjie Semiconductor.
Diversification Opportunities for China Life and Yuanjie Semiconductor
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Yuanjie is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding China Life Insurance and Yuanjie Semiconductor Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuanjie Semiconductor 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 Yuanjie Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuanjie Semiconductor has no effect on the direction of China Life i.e., China Life and Yuanjie Semiconductor go up and down completely randomly.
Pair Corralation between China Life and Yuanjie Semiconductor
Assuming the 90 days trading horizon China Life Insurance is expected to under-perform the Yuanjie Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, China Life Insurance is 2.24 times less risky than Yuanjie Semiconductor. The stock trades about -0.13 of its potential returns per unit of risk. The Yuanjie Semiconductor Technology is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 13,172 in Yuanjie Semiconductor Technology on October 23, 2024 and sell it today you would earn a total of 1,328 from holding Yuanjie Semiconductor Technology or generate 10.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Life Insurance vs. Yuanjie Semiconductor Technolo
Performance |
| Timeline |
| China Life Insurance |
| Yuanjie Semiconductor |
China Life and Yuanjie Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Life and Yuanjie Semiconductor
The main advantage of trading using opposite China Life and Yuanjie Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Life position performs unexpectedly, Yuanjie Semiconductor 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 Yuanjie Semiconductor will offset losses from the drop in Yuanjie Semiconductor's long position.| China Life vs. Shandong Sanyuan Biotechnology | China Life vs. Peoples Insurance of | China Life vs. Jonjee Hi tech Industrial | China Life vs. Guangdong Marubi Biotechnology |
| Yuanjie Semiconductor vs. Shanghai Jinfeng Wine | Yuanjie Semiconductor vs. Weichai Heavy Machinery | Yuanjie Semiconductor vs. Nanxing Furniture Machinery | Yuanjie Semiconductor vs. China Life Insurance |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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