Correlation Between China Mobile and China Union
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By analyzing existing cross correlation between China Mobile Limited and China Union Holdings, you can compare the effects of market volatilities on China Mobile and China Union 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 Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and China Union.
Diversification Opportunities for China Mobile and China Union
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and China is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and China Union Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Union Holdings 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 Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Union Holdings has no effect on the direction of China Mobile i.e., China Mobile and China Union go up and down completely randomly.
Pair Corralation between China Mobile and China Union
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.77 times more return on investment than China Union. However, China Mobile Limited is 1.29 times less risky than China Union. It trades about 0.06 of its potential returns per unit of risk. China Union Holdings is currently generating about 0.02 per unit of risk. If you would invest 7,250 in China Mobile Limited on September 26, 2024 and sell it today you would earn a total of 4,239 from holding China Mobile Limited or generate 58.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
China Mobile Limited vs. China Union Holdings
Performance |
| Timeline |
| China Mobile Limited |
| China Union Holdings |
China Mobile and China Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and China Union
The main advantage of trading using opposite China Mobile and China Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, China Union 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 Union will offset losses from the drop in China Union'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 Union vs. PetroChina Co Ltd | China Union vs. China Mobile Limited | China Union vs. CNOOC Limited | China Union 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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