Correlation Between China Mobile and Shanghai CEO
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By analyzing existing cross correlation between China Mobile Limited and Shanghai CEO Environmental, you can compare the effects of market volatilities on China Mobile and Shanghai CEO 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 CEO. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Shanghai CEO.
Diversification Opportunities for China Mobile and Shanghai CEO
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and Shanghai is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Shanghai CEO Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai CEO Environ 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 CEO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai CEO Environ has no effect on the direction of China Mobile i.e., China Mobile and Shanghai CEO go up and down completely randomly.
Pair Corralation between China Mobile and Shanghai CEO
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.53 times more return on investment than Shanghai CEO. However, China Mobile Limited is 1.88 times less risky than Shanghai CEO. It trades about 0.09 of its potential returns per unit of risk. Shanghai CEO Environmental is currently generating about -0.15 per unit of risk. If you would invest 10,638 in China Mobile Limited on October 30, 2024 and sell it today you would earn a total of 459.00 from holding China Mobile Limited or generate 4.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Shanghai CEO Environmental
Performance |
| Timeline |
| China Mobile Limited |
| Shanghai CEO Environ |
China Mobile and Shanghai CEO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Shanghai CEO
The main advantage of trading using opposite China Mobile and Shanghai CEO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Shanghai CEO 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 CEO will offset losses from the drop in Shanghai CEO's long position.| China Mobile vs. Nanjing Putian Telecommunications | China Mobile vs. Sichuan Jinshi Technology | China Mobile vs. Strait Innovation Internet | China Mobile vs. Innovative Medical Management |
| Shanghai CEO vs. China Petroleum Chemical | Shanghai CEO vs. PetroChina Co Ltd | Shanghai CEO vs. China State Construction | Shanghai CEO vs. China Railway Group |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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