Correlation Between Songz Automobile and China Life
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By analyzing existing cross correlation between Songz Automobile Air and China Life Insurance, you can compare the effects of market volatilities on Songz Automobile 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 Songz Automobile with a short position of China Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Songz Automobile and China Life.
Diversification Opportunities for Songz Automobile and China Life
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Songz and China is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Songz Automobile Air 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 Songz Automobile 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 Songz Automobile Air 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 Songz Automobile i.e., Songz Automobile and China Life go up and down completely randomly.
Pair Corralation between Songz Automobile and China Life
Assuming the 90 days trading horizon Songz Automobile Air is expected to under-perform the China Life. In addition to that, Songz Automobile is 1.21 times more volatile than China Life Insurance. It trades about 0.0 of its total potential returns per unit of risk. China Life Insurance is currently generating about 0.09 per unit of volatility. If you would invest 2,799 in China Life Insurance on September 25, 2024 and sell it today you would earn a total of 1,355 from holding China Life Insurance or generate 48.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Songz Automobile Air vs. China Life Insurance
Performance |
Timeline |
Songz Automobile Air |
China Life Insurance |
Songz Automobile and China Life Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Songz Automobile and China Life
The main advantage of trading using opposite Songz Automobile and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Songz Automobile 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.Songz Automobile vs. China Life Insurance | Songz Automobile vs. Cinda Securities Co | Songz Automobile vs. Piotech Inc A | Songz Automobile vs. Dongxing Sec Co |
China Life vs. Kweichow Moutai Co | China Life vs. Shenzhen Mindray Bio Medical | China Life vs. Jiangsu Pacific Quartz | China Life vs. G bits Network 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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