Correlation Between Shandong Longquan and China Mobile
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By analyzing existing cross correlation between Shandong Longquan Pipeline and China Mobile Limited, you can compare the effects of market volatilities on Shandong Longquan 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 Shandong Longquan with a short position of China Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Longquan and China Mobile.
Diversification Opportunities for Shandong Longquan and China Mobile
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shandong and China is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Longquan Pipeline 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 Shandong Longquan 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 Shandong Longquan Pipeline 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 Shandong Longquan i.e., Shandong Longquan and China Mobile go up and down completely randomly.
Pair Corralation between Shandong Longquan and China Mobile
Assuming the 90 days trading horizon Shandong Longquan Pipeline is expected to generate 1.4 times more return on investment than China Mobile. However, Shandong Longquan is 1.4 times more volatile than China Mobile Limited. It trades about 0.12 of its potential returns per unit of risk. China Mobile Limited is currently generating about -0.28 per unit of risk. If you would invest 456.00 in Shandong Longquan Pipeline on October 29, 2024 and sell it today you would earn a total of 18.00 from holding Shandong Longquan Pipeline or generate 3.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Shandong Longquan Pipeline vs. China Mobile Limited
Performance |
| Timeline |
| Shandong Longquan |
| China Mobile Limited |
Shandong Longquan and China Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Longquan and China Mobile
The main advantage of trading using opposite Shandong Longquan and China Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Longquan 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.| Shandong Longquan vs. Anhui Tongguan Copper | Shandong Longquan vs. Hainan Mining Co | Shandong Longquan vs. Yili Chuanning Biotechnology | Shandong Longquan vs. Changchun BCHT Biotechnology |
| China Mobile vs. Sharetronic Data Technology | China Mobile vs. HUAQIN TECHNOLOGY LTD | China Mobile vs. Beijing Mainstreets Investment | China Mobile vs. Postal Savings Bank |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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