Correlation Between China Mobile and Shenwu Energy
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By analyzing existing cross correlation between China Mobile Limited and Shenwu Energy Saving, you can compare the effects of market volatilities on China Mobile and Shenwu Energy 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 Shenwu Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Shenwu Energy.
Diversification Opportunities for China Mobile and Shenwu Energy
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Shenwu is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Shenwu Energy Saving in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenwu Energy Saving 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 Shenwu Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenwu Energy Saving has no effect on the direction of China Mobile i.e., China Mobile and Shenwu Energy go up and down completely randomly.
Pair Corralation between China Mobile and Shenwu Energy
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.49 times more return on investment than Shenwu Energy. However, China Mobile Limited is 2.04 times less risky than Shenwu Energy. It trades about 0.05 of its potential returns per unit of risk. Shenwu Energy Saving is currently generating about 0.0 per unit of risk. If you would invest 7,550 in China Mobile Limited on October 23, 2024 and sell it today you would earn a total of 3,300 from holding China Mobile Limited or generate 43.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Shenwu Energy Saving
Performance |
| Timeline |
| China Mobile Limited |
| Shenwu Energy Saving |
China Mobile and Shenwu Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Shenwu Energy
The main advantage of trading using opposite China Mobile and Shenwu Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Shenwu Energy 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 Shenwu Energy will offset losses from the drop in Shenwu Energy's long position.| China Mobile vs. Uroica Mining Safety | China Mobile vs. Fujian Oriental Silver | China Mobile vs. Jinhui Mining Co | China Mobile vs. JCHX Mining Management |
| Shenwu Energy vs. Qilu Bank Co | Shenwu Energy vs. Digital China Information | Shenwu Energy vs. Ningbo Tech Bank Co | Shenwu Energy vs. CITIC Guoan 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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