Correlation Between China Mobile and Shenzhen Glory
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By analyzing existing cross correlation between China Mobile Limited and Shenzhen Glory Medical, you can compare the effects of market volatilities on China Mobile and Shenzhen Glory 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 Shenzhen Glory. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Shenzhen Glory.
Diversification Opportunities for China Mobile and Shenzhen Glory
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Shenzhen is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Shenzhen Glory Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Glory Medical 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 Shenzhen Glory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Glory Medical has no effect on the direction of China Mobile i.e., China Mobile and Shenzhen Glory go up and down completely randomly.
Pair Corralation between China Mobile and Shenzhen Glory
Assuming the 90 days trading horizon China Mobile is expected to generate 1.22 times less return on investment than Shenzhen Glory. But when comparing it to its historical volatility, China Mobile Limited is 2.06 times less risky than Shenzhen Glory. It trades about 0.14 of its potential returns per unit of risk. Shenzhen Glory Medical is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 325.00 in Shenzhen Glory Medical on September 1, 2024 and sell it today you would earn a total of 13.00 from holding Shenzhen Glory Medical or generate 4.0% 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. Shenzhen Glory Medical
Performance |
| Timeline |
| China Mobile Limited |
| Shenzhen Glory Medical |
China Mobile and Shenzhen Glory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Shenzhen Glory
The main advantage of trading using opposite China Mobile and Shenzhen Glory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Shenzhen Glory 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 Shenzhen Glory will offset losses from the drop in Shenzhen Glory'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 |
| Shenzhen Glory vs. Industrial and Commercial | Shenzhen Glory vs. Agricultural Bank of | Shenzhen Glory vs. China Construction Bank | Shenzhen Glory 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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