Correlation Between Shenzhen Noposion and China Mobile
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By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and China Mobile Limited, you can compare the effects of market volatilities on Shenzhen Noposion and China Mobile 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 Shenzhen Noposion with a short position of China Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and China Mobile.
Diversification Opportunities for Shenzhen Noposion and China Mobile
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and China is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical and China Mobile Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Mobile Limited and Shenzhen Noposion 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 Shenzhen Noposion Agrochemicals are associated (or correlated) with China Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Mobile Limited has no effect on the direction of Shenzhen Noposion i.e., Shenzhen Noposion and China Mobile go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and China Mobile
Assuming the 90 days trading horizon Shenzhen Noposion Agrochemicals is expected to under-perform the China Mobile. In addition to that, Shenzhen Noposion is 3.29 times more volatile than China Mobile Limited. It trades about -0.15 of its total potential returns per unit of risk. China Mobile Limited is currently generating about -0.18 per unit of volatility. If you would invest 11,500 in China Mobile Limited on November 3, 2024 and sell it today you would lose (403.00) from holding China Mobile Limited or give up 3.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Noposion Agrochemical vs. China Mobile Limited
Performance |
| Timeline |
| Shenzhen Noposion |
| China Mobile Limited |
Shenzhen Noposion and China Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Noposion and China Mobile
The main advantage of trading using opposite Shenzhen Noposion and China Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion position performs unexpectedly, China Mobile 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 Mobile will offset losses from the drop in China Mobile's long position.| Shenzhen Noposion vs. Zijin Mining Group | Shenzhen Noposion vs. Wanhua Chemical Group | Shenzhen Noposion vs. Baoshan Iron Steel | Shenzhen Noposion vs. Shandong Gold Mining |
| China Mobile vs. Heilongjiang Transport Development | China Mobile vs. Wasu Media Holding | China Mobile vs. Southern PublishingMedia Co | China Mobile vs. Silkroad Visual 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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