Correlation Between China Mobile and Guangdong Skychem
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By analyzing existing cross correlation between China Mobile Limited and Guangdong Skychem Technology, you can compare the effects of market volatilities on China Mobile and Guangdong Skychem 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 Guangdong Skychem. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Guangdong Skychem.
Diversification Opportunities for China Mobile and Guangdong Skychem
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Guangdong is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Guangdong Skychem Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Skychem 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 Guangdong Skychem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Skychem has no effect on the direction of China Mobile i.e., China Mobile and Guangdong Skychem go up and down completely randomly.
Pair Corralation between China Mobile and Guangdong Skychem
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.44 times more return on investment than Guangdong Skychem. However, China Mobile Limited is 2.25 times less risky than Guangdong Skychem. It trades about 0.35 of its potential returns per unit of risk. Guangdong Skychem Technology is currently generating about 0.04 per unit of risk. If you would invest 10,542 in China Mobile Limited on September 27, 2024 and sell it today you would earn a total of 1,017 from holding China Mobile Limited or generate 9.65% 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. Guangdong Skychem Technology
Performance |
| Timeline |
| China Mobile Limited |
| Guangdong Skychem |
China Mobile and Guangdong Skychem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Guangdong Skychem
The main advantage of trading using opposite China Mobile and Guangdong Skychem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Guangdong Skychem 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 Guangdong Skychem will offset losses from the drop in Guangdong Skychem's long position.| China Mobile vs. Chengdu Kanghua Biological | China Mobile vs. Beijing Wantai Biological | China Mobile vs. Suzhou Novoprotein Scientific | China Mobile vs. COL Digital Publishing |
| Guangdong Skychem vs. Industrial and Commercial | Guangdong Skychem vs. Kweichow Moutai Co | Guangdong Skychem vs. Agricultural Bank of | Guangdong Skychem 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 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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