Correlation Between China Life and Dazhong Transportation
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Life Insurance and Dazhong Transportation Group, you can compare the effects of market volatilities on China Life and Dazhong Transportation 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 Dazhong Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Life and Dazhong Transportation.
Diversification Opportunities for China Life and Dazhong Transportation
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Dazhong is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding China Life Insurance and Dazhong Transportation Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dazhong Transportation 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 Dazhong Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dazhong Transportation has no effect on the direction of China Life i.e., China Life and Dazhong Transportation go up and down completely randomly.
Pair Corralation between China Life and Dazhong Transportation
Assuming the 90 days trading horizon China Life Insurance is expected to under-perform the Dazhong Transportation. In addition to that, China Life is 1.46 times more volatile than Dazhong Transportation Group. It trades about -0.01 of its total potential returns per unit of risk. Dazhong Transportation Group is currently generating about 0.09 per unit of volatility. If you would invest 25.00 in Dazhong Transportation Group on September 3, 2024 and sell it today you would earn a total of 1.00 from holding Dazhong Transportation Group or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Life Insurance vs. Dazhong Transportation Group
Performance |
| Timeline |
| China Life Insurance |
| Dazhong Transportation |
China Life and Dazhong Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Life and Dazhong Transportation
The main advantage of trading using opposite China Life and Dazhong Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Life position performs unexpectedly, Dazhong Transportation 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 Dazhong Transportation will offset losses from the drop in Dazhong Transportation's long position.| China Life vs. Chongqing Road Bridge | China Life vs. Wuhan Xianglong Power | China Life vs. Empyrean Technology Co | China Life vs. Yuanjie Semiconductor Technology |
| Dazhong Transportation vs. Cultural Investment Holdings | Dazhong Transportation vs. Gome Telecom Equipment | Dazhong Transportation vs. Bus Online Co | Dazhong Transportation vs. Holitech Technology 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |