Correlation Between China Life and Maxvision Technology
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By analyzing existing cross correlation between China Life Insurance and Maxvision Technology Corp, you can compare the effects of market volatilities on China Life and Maxvision Technology 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 China Life with a short position of Maxvision Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Life and Maxvision Technology.
Diversification Opportunities for China Life and Maxvision Technology
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and Maxvision is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding China Life Insurance and Maxvision Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maxvision Technology Corp and China Life 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 China Life Insurance are associated (or correlated) with Maxvision Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maxvision Technology Corp has no effect on the direction of China Life i.e., China Life and Maxvision Technology go up and down completely randomly.
Pair Corralation between China Life and Maxvision Technology
Assuming the 90 days trading horizon China Life Insurance is expected to generate 0.73 times more return on investment than Maxvision Technology. However, China Life Insurance is 1.37 times less risky than Maxvision Technology. It trades about 0.02 of its potential returns per unit of risk. Maxvision Technology Corp is currently generating about -0.01 per unit of risk. If you would invest 3,547 in China Life Insurance on October 10, 2024 and sell it today you would earn a total of 348.00 from holding China Life Insurance or generate 9.81% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 99.79% |
Values | Daily Returns |
China Life Insurance vs. Maxvision Technology Corp
Performance |
Timeline |
China Life Insurance |
Maxvision Technology Corp |
China Life and Maxvision Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Life and Maxvision Technology
The main advantage of trading using opposite China Life and Maxvision Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Life position performs unexpectedly, Maxvision Technology 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 Maxvision Technology will offset losses from the drop in Maxvision Technology's long position.China Life vs. CGN Nuclear Technology | China Life vs. Wuxi Chemical Equipment | China Life vs. Dhc Software Co | China Life vs. Daoming OpticsChemical Co |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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