Correlation Between Shanghai Material and China Mobile
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By analyzing existing cross correlation between Shanghai Material Trading and China Mobile Limited, you can compare the effects of market volatilities on Shanghai Material 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 Shanghai Material with a short position of China Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Material and China Mobile.
Diversification Opportunities for Shanghai Material and China Mobile
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shanghai and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Material Trading 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 Shanghai Material 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 Shanghai Material Trading 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 Shanghai Material i.e., Shanghai Material and China Mobile go up and down completely randomly.
Pair Corralation between Shanghai Material and China Mobile
Assuming the 90 days trading horizon Shanghai Material Trading is expected to under-perform the China Mobile. In addition to that, Shanghai Material is 3.32 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 0.07 per unit of volatility. If you would invest 10,503 in China Mobile Limited on October 16, 2024 and sell it today you would earn a total of 331.00 from holding China Mobile Limited or generate 3.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Material Trading vs. China Mobile Limited
Performance |
| Timeline |
| Shanghai Material Trading |
| China Mobile Limited |
Shanghai Material and China Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Material and China Mobile
The main advantage of trading using opposite Shanghai Material and China Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Material 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.| Shanghai Material vs. Anji Foodstuff Co | Shanghai Material vs. Juewei Food Co | Shanghai Material vs. Wuhan Yangtze Communication | Shanghai Material vs. Zhongyin Babi Food |
| China Mobile vs. Shanghai Material Trading | China Mobile vs. ButOne Information Corp | China Mobile vs. Hygon Information Technology | China Mobile vs. Zhongfu Information |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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