Correlation Between China Mobile and Zhongshan Public
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Mobile Limited and Zhongshan Public Utilities, you can compare the effects of market volatilities on China Mobile and Zhongshan Public 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 China Mobile with a short position of Zhongshan Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Zhongshan Public.
Diversification Opportunities for China Mobile and Zhongshan Public
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Zhongshan is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Zhongshan Public Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongshan Public Uti and China Mobile 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 China Mobile Limited are associated (or correlated) with Zhongshan Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongshan Public Uti has no effect on the direction of China Mobile i.e., China Mobile and Zhongshan Public go up and down completely randomly.
Pair Corralation between China Mobile and Zhongshan Public
Assuming the 90 days trading horizon China Mobile Limited is expected to under-perform the Zhongshan Public. But the stock apears to be less risky and, when comparing its historical volatility, China Mobile Limited is 1.29 times less risky than Zhongshan Public. The stock trades about -0.21 of its potential returns per unit of risk. The Zhongshan Public Utilities is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 896.00 in Zhongshan Public Utilities on October 26, 2024 and sell it today you would lose (39.00) from holding Zhongshan Public Utilities or give up 4.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Zhongshan Public Utilities
Performance |
| Timeline |
| China Mobile Limited |
| Zhongshan Public Uti |
China Mobile and Zhongshan Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Zhongshan Public
The main advantage of trading using opposite China Mobile and Zhongshan Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Zhongshan Public 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 Zhongshan Public will offset losses from the drop in Zhongshan Public's long position.| China Mobile vs. Guangdong Jingyi Metal | China Mobile vs. Meinian Onehealth Healthcare | China Mobile vs. Mingchen Health Co | China Mobile vs. Shandong Hongchuang Aluminum |
| Zhongshan Public vs. Industrial and Commercial | Zhongshan Public vs. China Construction Bank | Zhongshan Public vs. Agricultural Bank of | Zhongshan Public vs. Bank of China |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| 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 | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |