Correlation Between China Life and Time Publishing
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By analyzing existing cross correlation between China Life Insurance and Time Publishing and, you can compare the effects of market volatilities on China Life and Time Publishing 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 Time Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Life and Time Publishing.
Diversification Opportunities for China Life and Time Publishing
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Time is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding China Life Insurance and Time Publishing and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Time Publishing 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 Time Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Time Publishing has no effect on the direction of China Life i.e., China Life and Time Publishing go up and down completely randomly.
Pair Corralation between China Life and Time Publishing
Assuming the 90 days trading horizon China Life Insurance is expected to generate 1.34 times more return on investment than Time Publishing. However, China Life is 1.34 times more volatile than Time Publishing and. It trades about 0.06 of its potential returns per unit of risk. Time Publishing and is currently generating about 0.07 per unit of risk. If you would invest 3,810 in China Life Insurance on September 25, 2024 and sell it today you would earn a total of 344.00 from holding China Life Insurance or generate 9.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
China Life Insurance vs. Time Publishing and
Performance |
Timeline |
China Life Insurance |
Time Publishing |
China Life and Time Publishing Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Life and Time Publishing
The main advantage of trading using opposite China Life and Time Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Life position performs unexpectedly, Time Publishing 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 Time Publishing will offset losses from the drop in Time Publishing's long position.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 |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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