Correlation Between Fujian Nanwang and China Mobile
Specify exactly 2 symbols:
By analyzing existing cross correlation between Fujian Nanwang Environment and China Mobile Limited, you can compare the effects of market volatilities on Fujian Nanwang 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 Fujian Nanwang with a short position of China Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Nanwang and China Mobile.
Diversification Opportunities for Fujian Nanwang and China Mobile
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fujian and China is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Nanwang Environment 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 Fujian Nanwang 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 Fujian Nanwang Environment 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 Fujian Nanwang i.e., Fujian Nanwang and China Mobile go up and down completely randomly.
Pair Corralation between Fujian Nanwang and China Mobile
Assuming the 90 days trading horizon Fujian Nanwang Environment is expected to generate 1.8 times more return on investment than China Mobile. However, Fujian Nanwang is 1.8 times more volatile than China Mobile Limited. It trades about 0.07 of its potential returns per unit of risk. China Mobile Limited is currently generating about 0.0 per unit of risk. If you would invest 1,018 in Fujian Nanwang Environment on October 18, 2024 and sell it today you would earn a total of 192.00 from holding Fujian Nanwang Environment or generate 18.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Nanwang Environment vs. China Mobile Limited
Performance |
| Timeline |
| Fujian Nanwang Envir |
| China Mobile Limited |
Fujian Nanwang and China Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Nanwang and China Mobile
The main advantage of trading using opposite Fujian Nanwang and China Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Nanwang 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.| Fujian Nanwang vs. China Minmetals Rare | Fujian Nanwang vs. Jahen Household Products | Fujian Nanwang vs. Hainan Mining Co | Fujian Nanwang vs. Hefei Metalforming Mach |
| China Mobile vs. Hubei Forbon Technology | China Mobile vs. Eit Environmental Development | China Mobile vs. Fujian Nanwang Environment | China Mobile vs. 360 Security 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |