Correlation Between Shanghai CEO and China Mobile
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By analyzing existing cross correlation between Shanghai CEO Environmental and China Mobile Limited, you can compare the effects of market volatilities on Shanghai CEO 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 Shanghai CEO with a short position of China Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai CEO and China Mobile.
Diversification Opportunities for Shanghai CEO and China Mobile
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shanghai and China is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai CEO Environmental 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 Shanghai CEO 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 Shanghai CEO Environmental 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 Shanghai CEO i.e., Shanghai CEO and China Mobile go up and down completely randomly.
Pair Corralation between Shanghai CEO and China Mobile
Assuming the 90 days trading horizon Shanghai CEO Environmental is expected to under-perform the China Mobile. In addition to that, Shanghai CEO is 1.88 times more volatile than China Mobile Limited. It trades about -0.15 of its total potential returns per unit of risk. China Mobile Limited is currently generating about 0.09 per unit of volatility. If you would invest 10,638 in China Mobile Limited on October 30, 2024 and sell it today you would earn a total of 459.00 from holding China Mobile Limited or generate 4.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai CEO Environmental vs. China Mobile Limited
Performance |
| Timeline |
| Shanghai CEO Environ |
| China Mobile Limited |
Shanghai CEO and China Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai CEO and China Mobile
The main advantage of trading using opposite Shanghai CEO and China Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai CEO 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.| Shanghai CEO vs. China Petroleum Chemical | Shanghai CEO vs. PetroChina Co Ltd | Shanghai CEO vs. China State Construction | Shanghai CEO vs. China Railway Group |
| China Mobile vs. Nanjing Putian Telecommunications | China Mobile vs. Sichuan Jinshi Technology | China Mobile vs. Strait Innovation Internet | China Mobile vs. Innovative Medical Management |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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