Correlation Between Jangho Group and China Life
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By analyzing existing cross correlation between Jangho Group Co and China Life Insurance, you can compare the effects of market volatilities on Jangho Group and China Life 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 Jangho Group with a short position of China Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jangho Group and China Life.
Diversification Opportunities for Jangho Group and China Life
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jangho and China is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Jangho Group Co and China Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Life Insurance and Jangho Group 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 Jangho Group Co are associated (or correlated) with China Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Life Insurance has no effect on the direction of Jangho Group i.e., Jangho Group and China Life go up and down completely randomly.
Pair Corralation between Jangho Group and China Life
Assuming the 90 days trading horizon Jangho Group Co is expected to generate 0.52 times more return on investment than China Life. However, Jangho Group Co is 1.94 times less risky than China Life. It trades about 0.14 of its potential returns per unit of risk. China Life Insurance is currently generating about 0.02 per unit of risk. If you would invest 550.00 in Jangho Group Co on September 5, 2024 and sell it today you would earn a total of 29.00 from holding Jangho Group Co or generate 5.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jangho Group Co vs. China Life Insurance
Performance |
| Timeline |
| Jangho Group |
| China Life Insurance |
Jangho Group and China Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jangho Group and China Life
The main advantage of trading using opposite Jangho Group and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jangho Group position performs unexpectedly, China Life 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 China Life will offset losses from the drop in China Life's long position.| Jangho Group vs. China Life Insurance | Jangho Group vs. Cinda Securities Co | Jangho Group vs. Piotech Inc A | Jangho Group vs. Dongxing Sec Co |
| China Life vs. Fujian Oriental Silver | China Life vs. Humanwell Healthcare Group | China Life vs. Chenzhou Jingui Silver | China Life vs. Jiangxi Naipu Mining |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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