China Stock Volatility

LFC
 Stock
  

USD 5.58  0.01  0.18%   

Our standpoint towards foreseeing the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for China Life Insurance, which you can use to evaluate the future volatility of the firm. Please confirm China Life Insurance mean deviation of 1.29, and Risk Adjusted Performance of (0.29) to double-check if the risk estimate we provide is consistent with the expected return of 0.0%.
  
China Life Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of China daily returns, and it is calculated using variance and standard deviation. We also use China's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of China Life volatility.

390 Days Market Risk

Very steady

Chance of Distress

390 Days Economic Sensitivity

Barely shadows the market
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as China Life can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of China Life at lower prices. For example, an investor can purchase China stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of China Life's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.

Moving against China Life

-0.95CNOCNO Financial GroupPairCorr
-0.9AFLAflac IncPairCorr
-0.89GLGlobe LifePairCorr
-0.88RZAReinsurance GroupPairCorr
-0.8BHFBrighthouse FinancialPairCorr
-0.74CFINCitizens FinancialPairCorr
-0.63AEGAegon NV ADRPairCorr

China Life Market Sensitivity And Downside Risk

China Life's beta coefficient measures the volatility of China stock compared to the systematic risk of the entire stock market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents China stock's returns against your selected market. In other words, China Life's beta of 0.0048 provides an investor with an approximation of how much risk China Life stock can potentially add to one of your existing portfolios.
China Life Insurance exhibits very low volatility with skewness of -1.8 and kurtosis of 9.17. However, we advise investors to further study China Life Insurance technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure China Life's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact China Life's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
3 Months Beta |Analyze China Life Insurance Demand Trend
Check current 90 days China Life correlation with market (NYSE Composite)

China Beta

    
  0.0048  
China standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.

Standard Deviation

    
  0.0  
It is essential to understand the difference between upside risk (as represented by China Life's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of China Life's daily returns or price. Since the actual investment returns on holding a position in china stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in China Life.

Using China Put Option to Manage Risk

Put options written on China Life grant holders of the option the right to sell a specified amount of China Life at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of China Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge China Life's position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding China Life will be realized, the loss incurred will be offset by the profits made with the option trade.

China Life's PUT expiring on 2023-01-20

   Profit   
Share
       China Life Price At Expiration  

Current China Life Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2023-01-20 PUT at $10.0-0.79580.110422023-01-201.4 - 3.23.2View
Put
2023-01-20 PUT at $7.5-0.65060.34757062023-01-200.5 - 0.950.46View
View All China Life Options

China Life Insurance Stock Volatility Analysis

Volatility refers to the frequency at which China Life stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with China Life's price changes. Investors will then calculate the volatility of China Life's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of China Life's volatility:

Historical Volatility

This type of stock volatility measures China Life's fluctuations based on previous trends. It's commonly used to predict China Life's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for China Life's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on China Life's to be redeemed at a future date.
Transformation
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China Life Projected Return Density Against Market

Considering the 90-day investment horizon China Life has a beta of 0.0048 . This indicates as returns on the market go up, China Life average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding China Life Insurance will be expected to be much smaller as well.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to China Life or Insurance sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that China Life's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a China stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
The company has a negative alpha, implying that the risk taken by holding this instrument is not justified. China Life Insurance is significantly underperforming NYSE Composite.
   Predicted Return Density   
       Returns  
China Life's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how china stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a China Life Price Volatility?

Several factors can influence a Stock's stock volatility:

Industry

Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

China Life Stock Risk Measures

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to China Life or Insurance sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that China Life's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a China stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision. Considering the 90-day investment horizon the coefficient of variation of China Life is 0.0. The daily returns are distributed with a variance of 0.0 and standard deviation of 0.0. The mean deviation of China Life Insurance is currently at 0.0. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 1.48
α
Alpha over NYSE Composite
-0.37
β
Beta against NYSE Composite0.0048
σ
Overall volatility
0.00
Ir
Information ratio -0.25

China Life Stock Return Volatility

China Life historical daily return volatility represents how much of China Life stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company has volatility of 0.0% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 12.6051% volatility on return distribution over the 90 days horizon.
 Performance (%) 
       Timeline  

About China Life Volatility

Volatility is a rate at which the price of China Life or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of China Life may increase or decrease. In other words, similar to China's beta indicator, it measures the risk of China Life and helps estimate the fluctuations that may happen in a short period of time. So if prices of China Life fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.
China Life Insurance Company Limited, together with its subsidiaries, operates as a life insurance company in the Peoples Republic of China. China Life Insurance Company Limited is a subsidiary of China Life Insurance Company Limited. China Life operates under InsuranceLife classification in the United States and is traded on NYQ Exchange. It employs 103262 people.

China Life Investment Opportunity

NYSE Composite has a standard deviation of returns of 12.61 and is 9.223372036854776E16 times more volatile than China Life Insurance. of all equities and portfolios are less risky than China Life. Compared to the overall equity markets, volatility of historical daily returns of China Life Insurance is lower than 0 () of all global equities and portfolios over the last 90 days. Use China Life Insurance to enhance the returns of your portfolios. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a normal upward fluctuation. Check odds of China Life to be traded at $5.86 in 90 days.

China Life Additional Risk Indicators

The analysis of China Life's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in China Life's investment and either accepting that risk or mitigating it. Along with some common measures of China Life stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

China Life Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against China Life as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. China Life's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, China Life's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to China Life Insurance.
Additionally, see Correlation Analysis. Note that the China Life Insurance information on this page should be used as a complementary analysis to other China Life's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Analyst Recommendations module to analyst recommendations and target price estimates broken down by several categories.

Complementary Tools for China Stock analysis

When running China Life Insurance price analysis, check to measure China Life's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy China Life is operating at the current time. Most of China Life's value examination focuses on studying past and present price action to predict the probability of China Life's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move China Life's price. Additionally, you may evaluate how the addition of China Life to your portfolios can decrease your overall portfolio volatility.
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Is China Life's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of China Life. If investors know China will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about China Life listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
(0.18) 
Market Capitalization
102.5 B
Quarterly Revenue Growth YOY
(0.24) 
Return On Assets
0.006
Return On Equity
0.0763
The market value of China Life Insurance is measured differently than its book value, which is the value of China that is recorded on the company's balance sheet. Investors also form their own opinion of China Life's value that differs from its market value or its book value, called intrinsic value, which is China Life's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because China Life's market value can be influenced by many factors that don't directly affect China Life's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between China Life's value and its price as these two are different measures arrived at by different means. Investors typically determine China Life value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, China Life's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.