Correlation Between China Mobile and Shanghai Newtouch
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By analyzing existing cross correlation between China Mobile Limited and Shanghai Newtouch Software, you can compare the effects of market volatilities on China Mobile and Shanghai Newtouch 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 Newtouch. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Shanghai Newtouch.
Diversification Opportunities for China Mobile and Shanghai Newtouch
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Shanghai is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Shanghai Newtouch Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Newtouch 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 Newtouch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Newtouch has no effect on the direction of China Mobile i.e., China Mobile and Shanghai Newtouch go up and down completely randomly.
Pair Corralation between China Mobile and Shanghai Newtouch
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.34 times more return on investment than Shanghai Newtouch. However, China Mobile Limited is 2.93 times less risky than Shanghai Newtouch. It trades about -0.24 of its potential returns per unit of risk. Shanghai Newtouch Software is currently generating about -0.32 per unit of risk. If you would invest 11,385 in China Mobile Limited on October 24, 2024 and sell it today you would lose (665.00) from holding China Mobile Limited or give up 5.84% of portfolio value 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 Newtouch Software
Performance |
| Timeline |
| China Mobile Limited |
| Shanghai Newtouch |
China Mobile and Shanghai Newtouch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Shanghai Newtouch
The main advantage of trading using opposite China Mobile and Shanghai Newtouch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Shanghai Newtouch 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 Newtouch will offset losses from the drop in Shanghai Newtouch's long position.| China Mobile vs. Giantec Semiconductor Corp | China Mobile vs. Ningbo Fujia Industrial | China Mobile vs. Shannon Semiconductor Technology | China Mobile vs. Guangdong Jingyi Metal |
| Shanghai Newtouch vs. PetroChina Co Ltd | Shanghai Newtouch vs. China Mobile Limited | Shanghai Newtouch vs. CNOOC Limited | Shanghai Newtouch vs. Ping An 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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