Correlation Between Jiangsu Financial and China Mobile
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By analyzing existing cross correlation between Jiangsu Financial Leasing and China Mobile Limited, you can compare the effects of market volatilities on Jiangsu Financial 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 Jiangsu Financial with a short position of China Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and China Mobile.
Diversification Opportunities for Jiangsu Financial and China Mobile
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangsu and China is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing 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 Jiangsu Financial 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 Jiangsu Financial Leasing 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 Jiangsu Financial i.e., Jiangsu Financial and China Mobile go up and down completely randomly.
Pair Corralation between Jiangsu Financial and China Mobile
Assuming the 90 days trading horizon Jiangsu Financial Leasing is expected to under-perform the China Mobile. In addition to that, Jiangsu Financial is 1.38 times more volatile than China Mobile Limited. It trades about -0.03 of its total potential returns per unit of risk. China Mobile Limited is currently generating about 0.19 per unit of volatility. If you would invest 10,282 in China Mobile Limited on September 5, 2024 and sell it today you would earn a total of 528.00 from holding China Mobile Limited or generate 5.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Financial Leasing vs. China Mobile Limited
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| China Mobile Limited |
Jiangsu Financial and China Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and China Mobile
The main advantage of trading using opposite Jiangsu Financial and China Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial 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.| Jiangsu Financial vs. China Petroleum Chemical | Jiangsu Financial vs. PetroChina Co Ltd | Jiangsu Financial vs. China State Construction | Jiangsu Financial vs. China Railway Group |
| China Mobile vs. Ye Chiu Metal | China Mobile vs. Jiangsu Financial Leasing | China Mobile vs. Xiwang Foodstuffs Co | China Mobile vs. Jiamei Food Packaging |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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