Correlation Between Shenzhen Inovance and China Mobile
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By analyzing existing cross correlation between Shenzhen Inovance Tech and China Mobile Limited, you can compare the effects of market volatilities on Shenzhen Inovance 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 Inovance with a short position of China Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Inovance and China Mobile.
Diversification Opportunities for Shenzhen Inovance and China Mobile
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shenzhen and China is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Inovance Tech 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 Inovance 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 Inovance Tech 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 Inovance i.e., Shenzhen Inovance and China Mobile go up and down completely randomly.
Pair Corralation between Shenzhen Inovance and China Mobile
Assuming the 90 days trading horizon Shenzhen Inovance Tech is expected to under-perform the China Mobile. In addition to that, Shenzhen Inovance is 1.33 times more volatile than China Mobile Limited. It trades about 0.0 of its total potential returns per unit of risk. China Mobile Limited is currently generating about 0.06 per unit of volatility. If you would invest 7,525 in China Mobile Limited on September 29, 2024 and sell it today you would earn a total of 3,935 from holding China Mobile Limited or generate 52.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.78% |
| Values | Daily Returns |
Shenzhen Inovance Tech vs. China Mobile Limited
Performance |
| Timeline |
| Shenzhen Inovance Tech |
| China Mobile Limited |
Shenzhen Inovance and China Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Inovance and China Mobile
The main advantage of trading using opposite Shenzhen Inovance and China Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Inovance 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 Inovance vs. BeiGene | Shenzhen Inovance vs. Kweichow Moutai Co | Shenzhen Inovance vs. Beijing Roborock Technology | Shenzhen Inovance vs. G bits Network Technology |
| China Mobile vs. Chengdu Kanghua Biological | China Mobile vs. Beijing Wantai Biological | China Mobile vs. Suzhou Novoprotein Scientific | China Mobile vs. COL Digital Publishing |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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