Correlation Between China Mobile and Shenzhen Bioeasy
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By analyzing existing cross correlation between China Mobile Limited and Shenzhen Bioeasy Biotechnology, you can compare the effects of market volatilities on China Mobile and Shenzhen Bioeasy 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 Bioeasy. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Shenzhen Bioeasy.
Diversification Opportunities for China Mobile and Shenzhen Bioeasy
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Shenzhen is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Shenzhen Bioeasy Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Bioeasy 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 Bioeasy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Bioeasy Bio has no effect on the direction of China Mobile i.e., China Mobile and Shenzhen Bioeasy go up and down completely randomly.
Pair Corralation between China Mobile and Shenzhen Bioeasy
Assuming the 90 days trading horizon China Mobile is expected to generate 12.67 times less return on investment than Shenzhen Bioeasy. But when comparing it to its historical volatility, China Mobile Limited is 3.36 times less risky than Shenzhen Bioeasy. It trades about 0.04 of its potential returns per unit of risk. Shenzhen Bioeasy Biotechnology is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 666.00 in Shenzhen Bioeasy Biotechnology on September 3, 2024 and sell it today you would earn a total of 322.00 from holding Shenzhen Bioeasy Biotechnology or generate 48.35% 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 Bioeasy Biotechnology
Performance |
| Timeline |
| China Mobile Limited |
| Shenzhen Bioeasy Bio |
China Mobile and Shenzhen Bioeasy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Shenzhen Bioeasy
The main advantage of trading using opposite China Mobile and Shenzhen Bioeasy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Shenzhen Bioeasy 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 Bioeasy will offset losses from the drop in Shenzhen Bioeasy's long position.| China Mobile vs. Andon Health Co | China Mobile vs. Jiangsu Yueda Investment | China Mobile vs. Impulse Qingdao Health | China Mobile vs. Metro Investment Development |
| Shenzhen Bioeasy vs. Chengdu Kanghua Biological | Shenzhen Bioeasy vs. Beijing Wantai Biological | Shenzhen Bioeasy vs. Suzhou Novoprotein Scientific | Shenzhen Bioeasy vs. Aluminum Corp of |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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