Correlation Between JiShi Media and China Life
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By analyzing existing cross correlation between JiShi Media Co and China Life Insurance, you can compare the effects of market volatilities on JiShi Media 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 JiShi Media with a short position of China Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of JiShi Media and China Life.
Diversification Opportunities for JiShi Media and China Life
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between JiShi and China is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding JiShi Media 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 JiShi Media 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 JiShi Media 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 JiShi Media i.e., JiShi Media and China Life go up and down completely randomly.
Pair Corralation between JiShi Media and China Life
Assuming the 90 days trading horizon JiShi Media is expected to generate 2.55 times less return on investment than China Life. In addition to that, JiShi Media is 1.79 times more volatile than China Life Insurance. It trades about 0.02 of its total potential returns per unit of risk. China Life Insurance is currently generating about 0.08 per unit of volatility. If you would invest 2,606 in China Life Insurance on October 14, 2024 and sell it today you would earn a total of 1,160 from holding China Life Insurance or generate 44.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JiShi Media Co vs. China Life Insurance
Performance |
| Timeline |
| JiShi Media |
| China Life Insurance |
JiShi Media and China Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JiShi Media and China Life
The main advantage of trading using opposite JiShi Media and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JiShi Media 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.| JiShi Media vs. Shengda Mining Co | JiShi Media vs. Eastern Communications Co | JiShi Media vs. Marssenger Kitchenware Co | JiShi Media vs. Wuhan Yangtze Communication |
| China Life vs. State Grid InformationCommunication | China Life vs. Bank of Communications | China Life vs. Anji Foodstuff Co | China Life vs. Wintao Communications 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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