Correlation Between Jiangsu Pacific and China Life
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By analyzing existing cross correlation between Jiangsu Pacific Quartz and China Life Insurance, you can compare the effects of market volatilities on Jiangsu Pacific 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 Jiangsu Pacific with a short position of China Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Pacific and China Life.
Diversification Opportunities for Jiangsu Pacific and China Life
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and China is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Pacific Quartz 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 Jiangsu Pacific 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 Jiangsu Pacific Quartz 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 Jiangsu Pacific i.e., Jiangsu Pacific and China Life go up and down completely randomly.
Pair Corralation between Jiangsu Pacific and China Life
Assuming the 90 days trading horizon Jiangsu Pacific Quartz is expected to under-perform the China Life. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Pacific Quartz is 1.19 times less risky than China Life. The stock trades about -0.01 of its potential returns per unit of risk. The China Life Insurance is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 4,096 in China Life Insurance on September 25, 2024 and sell it today you would earn a total of 152.00 from holding China Life Insurance or generate 3.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Jiangsu Pacific Quartz vs. China Life Insurance
Performance |
| Timeline |
| Jiangsu Pacific Quartz |
| China Life Insurance |
Jiangsu Pacific and China Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Pacific and China Life
The main advantage of trading using opposite Jiangsu Pacific and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Pacific 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.| Jiangsu Pacific vs. Ming Yang Smart | Jiangsu Pacific vs. 159681 | Jiangsu Pacific vs. 159005 | Jiangsu Pacific vs. Loctek Ergonomic Technology |
| China Life vs. RoadMain T Co | China Life vs. Kontour Medical Technology | China Life vs. Beijing Wandong Medical | China Life vs. Shandong Hi Speed RoadBridge |
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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