Correlation Between Wintao Communications and China Mobile
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By analyzing existing cross correlation between Wintao Communications Co and China Mobile Limited, you can compare the effects of market volatilities on Wintao Communications 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 Wintao Communications with a short position of China Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wintao Communications and China Mobile.
Diversification Opportunities for Wintao Communications and China Mobile
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wintao and China is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Wintao Communications Co 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 Wintao Communications 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 Wintao Communications Co 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 Wintao Communications i.e., Wintao Communications and China Mobile go up and down completely randomly.
Pair Corralation between Wintao Communications and China Mobile
Assuming the 90 days trading horizon Wintao Communications Co is expected to under-perform the China Mobile. In addition to that, Wintao Communications is 2.32 times more volatile than China Mobile Limited. It trades about -0.01 of its total potential returns per unit of risk. China Mobile Limited is currently generating about 0.1 per unit of volatility. If you would invest 10,630 in China Mobile Limited on September 19, 2024 and sell it today you would earn a total of 498.00 from holding China Mobile Limited or generate 4.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wintao Communications Co vs. China Mobile Limited
Performance |
| Timeline |
| Wintao Communications |
| China Mobile Limited |
Wintao Communications and China Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wintao Communications and China Mobile
The main advantage of trading using opposite Wintao Communications and China Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wintao Communications 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.| Wintao Communications vs. Industrial and Commercial | Wintao Communications vs. China Construction Bank | Wintao Communications vs. Agricultural Bank of | Wintao Communications vs. Bank of China |
| China Mobile vs. Tongyu Communication | China Mobile vs. Wintao Communications Co | China Mobile vs. Eastroc Beverage Group | China Mobile vs. Shenzhen Kexin Communication |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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