Correlation Between Penyao Environmental and China Mobile
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By analyzing existing cross correlation between Penyao Environmental Protection and China Mobile Limited, you can compare the effects of market volatilities on Penyao Environmental 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 Penyao Environmental with a short position of China Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penyao Environmental and China Mobile.
Diversification Opportunities for Penyao Environmental and China Mobile
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Penyao and China is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Penyao Environmental Protectio 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 Penyao Environmental 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 Penyao Environmental Protection 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 Penyao Environmental i.e., Penyao Environmental and China Mobile go up and down completely randomly.
Pair Corralation between Penyao Environmental and China Mobile
Assuming the 90 days trading horizon Penyao Environmental is expected to generate 4.37 times less return on investment than China Mobile. In addition to that, Penyao Environmental is 1.29 times more volatile than China Mobile Limited. It trades about 0.01 of its total potential returns per unit of risk. China Mobile Limited is currently generating about 0.05 per unit of volatility. If you would invest 7,525 in China Mobile Limited on October 29, 2024 and sell it today you would earn a total of 3,377 from holding China Mobile Limited or generate 44.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Penyao Environmental Protectio vs. China Mobile Limited
Performance |
| Timeline |
| Penyao Environmental |
| China Mobile Limited |
Penyao Environmental and China Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penyao Environmental and China Mobile
The main advantage of trading using opposite Penyao Environmental and China Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penyao Environmental 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.| Penyao Environmental vs. Guilin Seamild Foods | Penyao Environmental vs. Liaoning Dingjide Petrochemical | Penyao Environmental vs. Ligao Foods CoLtd | Penyao Environmental vs. Liuzhou Chemical Industry |
| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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