Correlation Between Guangzhou Fangbang and China Mobile
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By analyzing existing cross correlation between Guangzhou Fangbang Electronics and China Mobile Limited, you can compare the effects of market volatilities on Guangzhou Fangbang and China Mobile 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 Guangzhou Fangbang with a short position of China Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Fangbang and China Mobile.
Diversification Opportunities for Guangzhou Fangbang and China Mobile
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Guangzhou and China is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Fangbang Electronics and China Mobile Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Mobile Limited and Guangzhou Fangbang 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 Guangzhou Fangbang Electronics are associated (or correlated) with China Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Mobile Limited has no effect on the direction of Guangzhou Fangbang i.e., Guangzhou Fangbang and China Mobile go up and down completely randomly.
Pair Corralation between Guangzhou Fangbang and China Mobile
Assuming the 90 days trading horizon Guangzhou Fangbang is expected to generate 2.92 times less return on investment than China Mobile. In addition to that, Guangzhou Fangbang is 1.75 times more volatile than China Mobile Limited. It trades about 0.05 of its total potential returns per unit of risk. China Mobile Limited is currently generating about 0.27 per unit of volatility. If you would invest 10,636 in China Mobile Limited on September 28, 2024 and sell it today you would earn a total of 824.00 from holding China Mobile Limited or generate 7.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Fangbang Electronics vs. China Mobile Limited
Performance |
| Timeline |
| Guangzhou Fangbang |
| China Mobile Limited |
Guangzhou Fangbang and China Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Fangbang and China Mobile
The main advantage of trading using opposite Guangzhou Fangbang and China Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Fangbang position performs unexpectedly, China Mobile 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 China Mobile will offset losses from the drop in China Mobile's long position.| Guangzhou Fangbang vs. Industrial and Commercial | Guangzhou Fangbang vs. China Construction Bank | Guangzhou Fangbang vs. Agricultural Bank of | Guangzhou Fangbang vs. Bank of China |
| China Mobile vs. Chengdu Kanghua Biological | China Mobile vs. Beijing Wantai Biological | China Mobile vs. Suzhou Novoprotein Scientific | China Mobile vs. COL Digital Publishing |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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