Correlation Between China Mobile and Henzhen Zhaowei
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By analyzing existing cross correlation between China Mobile Limited and Henzhen Zhaowei Machinery, you can compare the effects of market volatilities on China Mobile and Henzhen Zhaowei 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 Henzhen Zhaowei. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Henzhen Zhaowei.
Diversification Opportunities for China Mobile and Henzhen Zhaowei
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Henzhen is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Henzhen Zhaowei Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henzhen Zhaowei Machinery 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 Henzhen Zhaowei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henzhen Zhaowei Machinery has no effect on the direction of China Mobile i.e., China Mobile and Henzhen Zhaowei go up and down completely randomly.
Pair Corralation between China Mobile and Henzhen Zhaowei
Assuming the 90 days trading horizon China Mobile is expected to generate 14.04 times less return on investment than Henzhen Zhaowei. But when comparing it to its historical volatility, China Mobile Limited is 3.88 times less risky than Henzhen Zhaowei. It trades about 0.07 of its potential returns per unit of risk. Henzhen Zhaowei Machinery is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 6,818 in Henzhen Zhaowei Machinery on November 27, 2024 and sell it today you would earn a total of 6,256 from holding Henzhen Zhaowei Machinery or generate 91.76% 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. Henzhen Zhaowei Machinery
Performance |
| Timeline |
| China Mobile Limited |
| Henzhen Zhaowei Machinery |
China Mobile and Henzhen Zhaowei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Henzhen Zhaowei
The main advantage of trading using opposite China Mobile and Henzhen Zhaowei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Henzhen Zhaowei 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 Henzhen Zhaowei will offset losses from the drop in Henzhen Zhaowei's long position.| China Mobile vs. Caihong Display Devices | China Mobile vs. Beijing Kingsoft Office | China Mobile vs. Suofeiya Home Collection | China Mobile vs. Hua Hong Semiconductor |
| Henzhen Zhaowei vs. Shenzhen Zqgame | Henzhen Zhaowei vs. Highbroad Advanced Material | Henzhen Zhaowei vs. Hua Xia Bank | Henzhen Zhaowei vs. Xinjiang Beixin RoadBridge |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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