Correlation Between China Mobile and China Vanke
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By analyzing existing cross correlation between China Mobile Limited and China Vanke Co, you can compare the effects of market volatilities on China Mobile and China Vanke 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 China Mobile with a short position of China Vanke. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and China Vanke.
Diversification Opportunities for China Mobile and China Vanke
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and China is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and China Vanke Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Vanke and China Mobile 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 China Mobile Limited are associated (or correlated) with China Vanke. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Vanke has no effect on the direction of China Mobile i.e., China Mobile and China Vanke go up and down completely randomly.
Pair Corralation between China Mobile and China Vanke
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.72 times more return on investment than China Vanke. However, China Mobile Limited is 1.39 times less risky than China Vanke. It trades about 0.35 of its potential returns per unit of risk. China Vanke Co is currently generating about -0.27 per unit of risk. If you would invest 10,542 in China Mobile Limited on September 27, 2024 and sell it today you would earn a total of 1,017 from holding China Mobile Limited or generate 9.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. China Vanke Co
Performance |
| Timeline |
| China Mobile Limited |
| China Vanke |
China Mobile and China Vanke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and China Vanke
The main advantage of trading using opposite China Mobile and China Vanke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, China Vanke 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 Vanke will offset losses from the drop in China Vanke's long position.| China Mobile vs. Chengdu Kanghua Biological | China Mobile vs. Beijing Wantai Biological | China Mobile vs. Suzhou Novoprotein Scientific | China Mobile vs. COL Digital Publishing |
| China Vanke vs. PetroChina Co Ltd | China Vanke vs. China Mobile Limited | China Vanke vs. CNOOC Limited | China Vanke vs. Ping An Insurance |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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