Correlation Between COL Digital and China Mobile
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By analyzing existing cross correlation between COL Digital Publishing and China Mobile Limited, you can compare the effects of market volatilities on COL Digital 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 COL Digital with a short position of China Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Digital and China Mobile.
Diversification Opportunities for COL Digital and China Mobile
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between COL and China is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding COL Digital Publishing 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 COL Digital 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 COL Digital Publishing 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 COL Digital i.e., COL Digital and China Mobile go up and down completely randomly.
Pair Corralation between COL Digital and China Mobile
Assuming the 90 days trading horizon COL Digital Publishing is expected to generate 3.18 times more return on investment than China Mobile. However, COL Digital is 3.18 times more volatile than China Mobile Limited. It trades about 0.06 of its potential returns per unit of risk. China Mobile Limited is currently generating about 0.06 per unit of risk. If you would invest 1,004 in COL Digital Publishing on September 26, 2024 and sell it today you would earn a total of 1,627 from holding COL Digital Publishing or generate 162.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
COL Digital Publishing vs. China Mobile Limited
Performance |
| Timeline |
| COL Digital Publishing |
| China Mobile Limited |
COL Digital and China Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Digital and China Mobile
The main advantage of trading using opposite COL Digital and China Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Digital 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.| COL Digital vs. Shuhua Sports Co | COL Digital vs. Harbin Air Conditioning | COL Digital vs. Threes Company Media | COL Digital vs. Tonghua Grape Wine |
| 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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