Correlation Between China Mobile and Sinocat Environmental
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By analyzing existing cross correlation between China Mobile Limited and Sinocat Environmental Technology, you can compare the effects of market volatilities on China Mobile and Sinocat Environmental 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 Sinocat Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Sinocat Environmental.
Diversification Opportunities for China Mobile and Sinocat Environmental
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Sinocat is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Sinocat Environmental Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinocat Environmental 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 Sinocat Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinocat Environmental has no effect on the direction of China Mobile i.e., China Mobile and Sinocat Environmental go up and down completely randomly.
Pair Corralation between China Mobile and Sinocat Environmental
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.38 times more return on investment than Sinocat Environmental. However, China Mobile Limited is 2.6 times less risky than Sinocat Environmental. It trades about 0.02 of its potential returns per unit of risk. Sinocat Environmental Technology is currently generating about -0.03 per unit of risk. If you would invest 9,872 in China Mobile Limited on September 4, 2024 and sell it today you would earn a total of 675.00 from holding China Mobile Limited or generate 6.84% 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. Sinocat Environmental Technolo
Performance |
| Timeline |
| China Mobile Limited |
| Sinocat Environmental |
China Mobile and Sinocat Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Sinocat Environmental
The main advantage of trading using opposite China Mobile and Sinocat Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Sinocat Environmental 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 Sinocat Environmental will offset losses from the drop in Sinocat Environmental's long position.| China Mobile vs. New China Life | China Mobile vs. Ming Yang Smart | China Mobile vs. 159681 | China Mobile vs. 159005 |
| Sinocat Environmental vs. Saurer Intelligent Technology | Sinocat Environmental vs. Dhc Software Co | Sinocat Environmental vs. Sinofibers Technology Co | Sinocat Environmental vs. Holitech Technology Co |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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