Correlation Between Shanghai Yanpu and China Life
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By analyzing existing cross correlation between Shanghai Yanpu Metal and China Life Insurance, you can compare the effects of market volatilities on Shanghai Yanpu 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 Shanghai Yanpu with a short position of China Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yanpu and China Life.
Diversification Opportunities for Shanghai Yanpu and China Life
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and China is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yanpu Metal 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 Shanghai Yanpu 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 Shanghai Yanpu Metal 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 Shanghai Yanpu i.e., Shanghai Yanpu and China Life go up and down completely randomly.
Pair Corralation between Shanghai Yanpu and China Life
Assuming the 90 days trading horizon Shanghai Yanpu Metal is expected to generate 1.01 times more return on investment than China Life. However, Shanghai Yanpu is 1.01 times more volatile than China Life Insurance. It trades about 0.17 of its potential returns per unit of risk. China Life Insurance is currently generating about 0.06 per unit of risk. If you would invest 2,716 in Shanghai Yanpu Metal on September 25, 2024 and sell it today you would earn a total of 938.00 from holding Shanghai Yanpu Metal or generate 34.54% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Shanghai Yanpu Metal vs. China Life Insurance
Performance |
Timeline |
Shanghai Yanpu Metal |
China Life Insurance |
Shanghai Yanpu and China Life Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shanghai Yanpu and China Life
The main advantage of trading using opposite Shanghai Yanpu and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yanpu 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.Shanghai Yanpu vs. China Life Insurance | Shanghai Yanpu vs. Cinda Securities Co | Shanghai Yanpu vs. Piotech Inc A | Shanghai Yanpu 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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