Correlation Between Yuanjie Semiconductor and China Life
Specify exactly 2 symbols:
By analyzing existing cross correlation between Yuanjie Semiconductor Technology and China Life Insurance, you can compare the effects of market volatilities on Yuanjie Semiconductor 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 Yuanjie Semiconductor with a short position of China Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuanjie Semiconductor and China Life.
Diversification Opportunities for Yuanjie Semiconductor and China Life
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yuanjie and China is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Yuanjie Semiconductor Technolo 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 Yuanjie Semiconductor 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 Yuanjie Semiconductor Technology 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 Yuanjie Semiconductor i.e., Yuanjie Semiconductor and China Life go up and down completely randomly.
Pair Corralation between Yuanjie Semiconductor and China Life
Assuming the 90 days trading horizon Yuanjie Semiconductor Technology is expected to generate 2.54 times more return on investment than China Life. However, Yuanjie Semiconductor is 2.54 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 0.03 per unit of risk. If you would invest 8,281 in Yuanjie Semiconductor Technology on September 3, 2024 and sell it today you would earn a total of 6,003 from holding Yuanjie Semiconductor Technology or generate 72.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.74% |
| Values | Daily Returns |
Yuanjie Semiconductor Technolo vs. China Life Insurance
Performance |
| Timeline |
| Yuanjie Semiconductor |
| China Life Insurance |
Yuanjie Semiconductor and China Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuanjie Semiconductor and China Life
The main advantage of trading using opposite Yuanjie Semiconductor and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuanjie Semiconductor 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.The idea behind Yuanjie Semiconductor Technology and China Life Insurance pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| China Life vs. Chongqing Road Bridge | China Life vs. Wuhan Xianglong Power | China Life vs. Empyrean Technology Co | China Life vs. Yuanjie Semiconductor Technology |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |