Correlation Between Yunnan Jianzhijia and China Life
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By analyzing existing cross correlation between Yunnan Jianzhijia Health Chain and China Life Insurance, you can compare the effects of market volatilities on Yunnan Jianzhijia 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 Yunnan Jianzhijia with a short position of China Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Jianzhijia and China Life.
Diversification Opportunities for Yunnan Jianzhijia and China Life
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yunnan and China is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Jianzhijia Health Chain 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 Yunnan Jianzhijia 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 Yunnan Jianzhijia Health Chain 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 Yunnan Jianzhijia i.e., Yunnan Jianzhijia and China Life go up and down completely randomly.
Pair Corralation between Yunnan Jianzhijia and China Life
Assuming the 90 days trading horizon Yunnan Jianzhijia Health Chain is expected to generate 1.19 times more return on investment than China Life. However, Yunnan Jianzhijia is 1.19 times more volatile than China Life Insurance. It trades about 0.05 of its potential returns per unit of risk. China Life Insurance is currently generating about 0.0 per unit of risk. If you would invest 2,564 in Yunnan Jianzhijia Health Chain on September 4, 2024 and sell it today you would earn a total of 76.00 from holding Yunnan Jianzhijia Health Chain or generate 2.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunnan Jianzhijia Health Chain vs. China Life Insurance
Performance |
| Timeline |
| Yunnan Jianzhijia |
| China Life Insurance |
Yunnan Jianzhijia and China Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Jianzhijia and China Life
The main advantage of trading using opposite Yunnan Jianzhijia and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Jianzhijia 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.| Yunnan Jianzhijia vs. Cambricon Technologies Corp | Yunnan Jianzhijia vs. Loongson Technology Corp | Yunnan Jianzhijia vs. Shenzhen Fortune Trend | Yunnan Jianzhijia vs. Chongqing Road Bridge |
| China Life vs. Beijing Kaiwen Education | China Life vs. Shanghai Action Education | China Life vs. Chengtun Mining Group | China Life vs. Zhejiang Publishing Media |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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