Correlation Between China Mobile and Shanghai Rongtai
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By analyzing existing cross correlation between China Mobile Limited and Shanghai Rongtai Health, you can compare the effects of market volatilities on China Mobile and Shanghai Rongtai 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 Shanghai Rongtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Shanghai Rongtai.
Diversification Opportunities for China Mobile and Shanghai Rongtai
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Shanghai is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Shanghai Rongtai Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rongtai Health 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 Shanghai Rongtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rongtai Health has no effect on the direction of China Mobile i.e., China Mobile and Shanghai Rongtai go up and down completely randomly.
Pair Corralation between China Mobile and Shanghai Rongtai
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.45 times more return on investment than Shanghai Rongtai. However, China Mobile Limited is 2.2 times less risky than Shanghai Rongtai. It trades about 0.03 of its potential returns per unit of risk. Shanghai Rongtai Health is currently generating about -0.1 per unit of risk. If you would invest 10,080 in China Mobile Limited on September 3, 2024 and sell it today you would earn a total of 558.00 from holding China Mobile Limited or generate 5.54% 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. Shanghai Rongtai Health
Performance |
| Timeline |
| China Mobile Limited |
| Shanghai Rongtai Health |
China Mobile and Shanghai Rongtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Shanghai Rongtai
The main advantage of trading using opposite China Mobile and Shanghai Rongtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Shanghai Rongtai 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 Shanghai Rongtai will offset losses from the drop in Shanghai Rongtai'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 |
| Shanghai Rongtai vs. PetroChina Co Ltd | Shanghai Rongtai vs. China Mobile Limited | Shanghai Rongtai vs. Industrial and Commercial | Shanghai Rongtai vs. China Life Insurance |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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