Correlation Between China Mobile and Shenzhen Silver
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By analyzing existing cross correlation between China Mobile Limited and Shenzhen Silver Basis, you can compare the effects of market volatilities on China Mobile and Shenzhen Silver 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 Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Shenzhen Silver.
Diversification Opportunities for China Mobile and Shenzhen Silver
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Shenzhen is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Shenzhen Silver Basis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Silver Basis 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 Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Silver Basis has no effect on the direction of China Mobile i.e., China Mobile and Shenzhen Silver go up and down completely randomly.
Pair Corralation between China Mobile and Shenzhen Silver
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.39 times more return on investment than Shenzhen Silver. However, China Mobile Limited is 2.55 times less risky than Shenzhen Silver. It trades about -0.24 of its potential returns per unit of risk. Shenzhen Silver Basis is currently generating about -0.13 per unit of risk. If you would invest 11,385 in China Mobile Limited on October 24, 2024 and sell it today you would lose (665.00) from holding China Mobile Limited or give up 5.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Shenzhen Silver Basis
Performance |
| Timeline |
| China Mobile Limited |
| Shenzhen Silver Basis |
China Mobile and Shenzhen Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Shenzhen Silver
The main advantage of trading using opposite China Mobile and Shenzhen Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Shenzhen Silver 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 Silver will offset losses from the drop in Shenzhen Silver's long position.| China Mobile vs. Giantec Semiconductor Corp | China Mobile vs. Ningbo Fujia Industrial | China Mobile vs. Shannon Semiconductor Technology | China Mobile vs. Guangdong Jingyi Metal |
| Shenzhen Silver vs. Guangdong Marubi Biotechnology | Shenzhen Silver vs. Maccura Biotechnology Co | Shenzhen Silver vs. Wuhan Hvsen Biotechnology | Shenzhen Silver vs. Success Electronics |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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