Correlation Between China Mobile and Zhangjiagang Freetrade
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By analyzing existing cross correlation between China Mobile Limited and Zhangjiagang Freetrade Science, you can compare the effects of market volatilities on China Mobile and Zhangjiagang Freetrade 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 Zhangjiagang Freetrade. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Zhangjiagang Freetrade.
Diversification Opportunities for China Mobile and Zhangjiagang Freetrade
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Zhangjiagang is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Zhangjiagang Freetrade Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhangjiagang Freetrade 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 Zhangjiagang Freetrade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhangjiagang Freetrade has no effect on the direction of China Mobile i.e., China Mobile and Zhangjiagang Freetrade go up and down completely randomly.
Pair Corralation between China Mobile and Zhangjiagang Freetrade
Assuming the 90 days trading horizon China Mobile Limited is expected to under-perform the Zhangjiagang Freetrade. In addition to that, China Mobile is 1.37 times more volatile than Zhangjiagang Freetrade Science. It trades about -0.06 of its total potential returns per unit of risk. Zhangjiagang Freetrade Science is currently generating about -0.02 per unit of volatility. If you would invest 348.00 in Zhangjiagang Freetrade Science on November 28, 2024 and sell it today you would lose (2.00) from holding Zhangjiagang Freetrade Science or give up 0.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Zhangjiagang Freetrade Science
Performance |
| Timeline |
| China Mobile Limited |
| Zhangjiagang Freetrade |
China Mobile and Zhangjiagang Freetrade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Zhangjiagang Freetrade
The main advantage of trading using opposite China Mobile and Zhangjiagang Freetrade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Zhangjiagang Freetrade 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 Zhangjiagang Freetrade will offset losses from the drop in Zhangjiagang Freetrade's long position.| China Mobile vs. Allied Machinery Co | China Mobile vs. Fsilon Furnishing and | China Mobile vs. Zhejiang Yinlun Machinery | China Mobile vs. Hangzhou Zhongya Machinery |
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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