Correlation Between China Mobile and Inspur Software
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By analyzing existing cross correlation between China Mobile Limited and Inspur Software Co, you can compare the effects of market volatilities on China Mobile and Inspur Software 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 Inspur Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Inspur Software.
Diversification Opportunities for China Mobile and Inspur Software
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and Inspur is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Inspur Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inspur Software 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 Inspur Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inspur Software has no effect on the direction of China Mobile i.e., China Mobile and Inspur Software go up and down completely randomly.
Pair Corralation between China Mobile and Inspur Software
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.5 times more return on investment than Inspur Software. However, China Mobile Limited is 2.0 times less risky than Inspur Software. It trades about -0.21 of its potential returns per unit of risk. Inspur Software Co is currently generating about -0.11 per unit of risk. If you would invest 11,559 in China Mobile Limited on October 26, 2024 and sell it today you would lose (604.00) from holding China Mobile Limited or give up 5.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Inspur Software Co
Performance |
| Timeline |
| China Mobile Limited |
| Inspur Software |
China Mobile and Inspur Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Inspur Software
The main advantage of trading using opposite China Mobile and Inspur Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Inspur Software 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 Inspur Software will offset losses from the drop in Inspur Software's long position.| China Mobile vs. Guangdong Jingyi Metal | China Mobile vs. Meinian Onehealth Healthcare | China Mobile vs. Mingchen Health Co | China Mobile vs. Shandong Hongchuang Aluminum |
| Inspur Software vs. Bank of China | Inspur Software vs. Kweichow Moutai Co | Inspur Software vs. PetroChina Co Ltd | Inspur Software vs. Bank of Communications |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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