Correlation Between SERI INDUSTRIAL and China Mobile
Can any of the company-specific risk be diversified away by investing in both SERI INDUSTRIAL and China Mobile at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining SERI INDUSTRIAL and China Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SERI INDUSTRIAL EO and China Mobile Limited, you can compare the effects of market volatilities on SERI INDUSTRIAL 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 SERI INDUSTRIAL with a short position of China Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of SERI INDUSTRIAL and China Mobile.
Diversification Opportunities for SERI INDUSTRIAL and China Mobile
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SERI and China is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding SERI INDUSTRIAL EO 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 SERI INDUSTRIAL 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 SERI INDUSTRIAL EO 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 SERI INDUSTRIAL i.e., SERI INDUSTRIAL and China Mobile go up and down completely randomly.
Pair Corralation between SERI INDUSTRIAL and China Mobile
If you would invest 240.00 in SERI INDUSTRIAL EO on October 23, 2024 and sell it today you would earn a total of 10.00 from holding SERI INDUSTRIAL EO or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
SERI INDUSTRIAL EO vs. China Mobile Limited
Performance |
| Timeline |
| SERI INDUSTRIAL EO |
| China Mobile Limited |
SERI INDUSTRIAL and China Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SERI INDUSTRIAL and China Mobile
The main advantage of trading using opposite SERI INDUSTRIAL and China Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SERI INDUSTRIAL 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.| SERI INDUSTRIAL vs. Apple Inc | SERI INDUSTRIAL vs. Apple Inc | SERI INDUSTRIAL vs. Apple Inc | SERI INDUSTRIAL vs. Apple Inc |
| China Mobile vs. SOUTHWEST AIRLINES | China Mobile vs. United Airlines Holdings | China Mobile vs. Harmony Gold Mining | China Mobile vs. SERI INDUSTRIAL EO |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |