Correlation Between China Mobile and Leaguer Shenzhen
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By analyzing existing cross correlation between China Mobile Limited and Leaguer Shenzhen MicroElectronics, you can compare the effects of market volatilities on China Mobile and Leaguer Shenzhen 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 Leaguer Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Leaguer Shenzhen.
Diversification Opportunities for China Mobile and Leaguer Shenzhen
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Leaguer is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Leaguer Shenzhen MicroElectron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leaguer Shenzhen Mic 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 Leaguer Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leaguer Shenzhen Mic has no effect on the direction of China Mobile i.e., China Mobile and Leaguer Shenzhen go up and down completely randomly.
Pair Corralation between China Mobile and Leaguer Shenzhen
Assuming the 90 days trading horizon China Mobile is expected to generate 3.65 times less return on investment than Leaguer Shenzhen. But when comparing it to its historical volatility, China Mobile Limited is 2.78 times less risky than Leaguer Shenzhen. It trades about 0.04 of its potential returns per unit of risk. Leaguer Shenzhen MicroElectronics is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,435 in Leaguer Shenzhen MicroElectronics on September 3, 2024 and sell it today you would earn a total of 445.00 from holding Leaguer Shenzhen MicroElectronics or generate 18.28% 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. Leaguer Shenzhen MicroElectron
Performance |
| Timeline |
| China Mobile Limited |
| Leaguer Shenzhen Mic |
China Mobile and Leaguer Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Leaguer Shenzhen
The main advantage of trading using opposite China Mobile and Leaguer Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Leaguer Shenzhen 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 Leaguer Shenzhen will offset losses from the drop in Leaguer Shenzhen'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 |
| Leaguer Shenzhen vs. Agricultural Bank of | Leaguer Shenzhen vs. China Construction Bank | Leaguer Shenzhen vs. Postal Savings Bank | Leaguer Shenzhen 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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