Correlation Between China Mobile and Suofeiya Home
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By analyzing existing cross correlation between China Mobile Limited and Suofeiya Home Collection, you can compare the effects of market volatilities on China Mobile and Suofeiya Home 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 Suofeiya Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Suofeiya Home.
Diversification Opportunities for China Mobile and Suofeiya Home
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Suofeiya is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Suofeiya Home Collection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suofeiya Home Collection 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 Suofeiya Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suofeiya Home Collection has no effect on the direction of China Mobile i.e., China Mobile and Suofeiya Home go up and down completely randomly.
Pair Corralation between China Mobile and Suofeiya Home
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.71 times more return on investment than Suofeiya Home. However, China Mobile Limited is 1.41 times less risky than Suofeiya Home. It trades about 0.06 of its potential returns per unit of risk. Suofeiya Home Collection is currently generating about 0.02 per unit of risk. If you would invest 7,072 in China Mobile Limited on September 4, 2024 and sell it today you would earn a total of 3,475 from holding China Mobile Limited or generate 49.14% 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. Suofeiya Home Collection
Performance |
| Timeline |
| China Mobile Limited |
| Suofeiya Home Collection |
China Mobile and Suofeiya Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Suofeiya Home
The main advantage of trading using opposite China Mobile and Suofeiya Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Suofeiya Home 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 Suofeiya Home will offset losses from the drop in Suofeiya Home's long position.| China Mobile vs. New China Life | China Mobile vs. Ming Yang Smart | China Mobile vs. 159681 | China Mobile vs. 159005 |
| Suofeiya Home vs. Industrial and Commercial | Suofeiya Home vs. Agricultural Bank of | Suofeiya Home vs. China Construction Bank | Suofeiya Home 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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