Correlation Between China Mobile and Shenzhen Mindray
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By analyzing existing cross correlation between China Mobile Limited and Shenzhen Mindray Bio Medical, you can compare the effects of market volatilities on China Mobile and Shenzhen Mindray 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 Mindray. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Shenzhen Mindray.
Diversification Opportunities for China Mobile and Shenzhen Mindray
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Shenzhen is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Shenzhen Mindray Bio Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Mindray Bio 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 Mindray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Mindray Bio has no effect on the direction of China Mobile i.e., China Mobile and Shenzhen Mindray go up and down completely randomly.
Pair Corralation between China Mobile and Shenzhen Mindray
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.93 times more return on investment than Shenzhen Mindray. However, China Mobile Limited is 1.08 times less risky than Shenzhen Mindray. It trades about 0.06 of its potential returns per unit of risk. Shenzhen Mindray Bio Medical is currently generating about 0.0 per unit of risk. If you would invest 6,805 in China Mobile Limited on September 13, 2024 and sell it today you would earn a total of 3,853 from holding China Mobile Limited or generate 56.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Shenzhen Mindray Bio Medical
Performance |
| Timeline |
| China Mobile Limited |
| Shenzhen Mindray Bio |
China Mobile and Shenzhen Mindray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Shenzhen Mindray
The main advantage of trading using opposite China Mobile and Shenzhen Mindray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Shenzhen Mindray 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 Mindray will offset losses from the drop in Shenzhen Mindray's long position.| China Mobile vs. Industrial and Commercial | China Mobile vs. China Construction Bank | China Mobile vs. Agricultural Bank of | China Mobile vs. Bank of China |
| Shenzhen Mindray vs. Industrial and Commercial | Shenzhen Mindray vs. Kweichow Moutai Co | Shenzhen Mindray vs. Agricultural Bank of | Shenzhen Mindray vs. China Mobile Limited |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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