Correlation Between China Mobile and Shanghai Sanyou
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By analyzing existing cross correlation between China Mobile Limited and Shanghai Sanyou Medical, you can compare the effects of market volatilities on China Mobile and Shanghai Sanyou 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 Sanyou. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Shanghai Sanyou.
Diversification Opportunities for China Mobile and Shanghai Sanyou
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Shanghai is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Shanghai Sanyou Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Sanyou Medical 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 Sanyou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Sanyou Medical has no effect on the direction of China Mobile i.e., China Mobile and Shanghai Sanyou go up and down completely randomly.
Pair Corralation between China Mobile and Shanghai Sanyou
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.45 times more return on investment than Shanghai Sanyou. However, China Mobile Limited is 2.23 times less risky than Shanghai Sanyou. It trades about 0.06 of its potential returns per unit of risk. Shanghai Sanyou Medical is currently generating about 0.01 per unit of risk. If you would invest 8,885 in China Mobile Limited on September 14, 2024 and sell it today you would earn a total of 1,994 from holding China Mobile Limited or generate 22.44% 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. Shanghai Sanyou Medical
Performance |
| Timeline |
| China Mobile Limited |
| Shanghai Sanyou Medical |
China Mobile and Shanghai Sanyou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Shanghai Sanyou
The main advantage of trading using opposite China Mobile and Shanghai Sanyou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Shanghai Sanyou 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 Sanyou will offset losses from the drop in Shanghai Sanyou'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 |
| Shanghai Sanyou vs. Industrial and Commercial | Shanghai Sanyou vs. Kweichow Moutai Co | Shanghai Sanyou vs. Agricultural Bank of | Shanghai Sanyou 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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