Correlation Between China Mobile and Sinosteel Engineering
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By analyzing existing cross correlation between China Mobile Limited and Sinosteel Engineering and, you can compare the effects of market volatilities on China Mobile and Sinosteel Engineering 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 Sinosteel Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Sinosteel Engineering.
Diversification Opportunities for China Mobile and Sinosteel Engineering
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Sinosteel is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Sinosteel Engineering and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinosteel Engineering and 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 Sinosteel Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinosteel Engineering and has no effect on the direction of China Mobile i.e., China Mobile and Sinosteel Engineering go up and down completely randomly.
Pair Corralation between China Mobile and Sinosteel Engineering
Assuming the 90 days trading horizon China Mobile is expected to generate 1.37 times less return on investment than Sinosteel Engineering. But when comparing it to its historical volatility, China Mobile Limited is 1.75 times less risky than Sinosteel Engineering. It trades about 0.05 of its potential returns per unit of risk. Sinosteel Engineering and is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 598.00 in Sinosteel Engineering and on September 1, 2024 and sell it today you would earn a total of 112.00 from holding Sinosteel Engineering and or generate 18.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Sinosteel Engineering and
Performance |
| Timeline |
| China Mobile Limited |
| Sinosteel Engineering and |
China Mobile and Sinosteel Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Sinosteel Engineering
The main advantage of trading using opposite China Mobile and Sinosteel Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Sinosteel Engineering 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 Sinosteel Engineering will offset losses from the drop in Sinosteel Engineering's long position.| China Mobile vs. Kweichow Moutai Co | China Mobile vs. NAURA Technology Group | China Mobile vs. APT Medical | China Mobile vs. BYD Co Ltd |
| Sinosteel Engineering vs. Industrial Securities Co | Sinosteel Engineering vs. Western Metal Materials | Sinosteel Engineering vs. Shandong Huifa Foodstuff | Sinosteel Engineering vs. Sichuan Yahua Industrial |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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