Correlation Between China Mobile and Beijing Mainstreets
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By analyzing existing cross correlation between China Mobile Limited and Beijing Mainstreets Investment, you can compare the effects of market volatilities on China Mobile and Beijing Mainstreets 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 Beijing Mainstreets. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Beijing Mainstreets.
Diversification Opportunities for China Mobile and Beijing Mainstreets
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between China and Beijing is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Beijing Mainstreets Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Mainstreets 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 Beijing Mainstreets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Mainstreets has no effect on the direction of China Mobile i.e., China Mobile and Beijing Mainstreets go up and down completely randomly.
Pair Corralation between China Mobile and Beijing Mainstreets
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.39 times more return on investment than Beijing Mainstreets. However, China Mobile Limited is 2.57 times less risky than Beijing Mainstreets. It trades about 0.39 of its potential returns per unit of risk. Beijing Mainstreets Investment is currently generating about -0.21 per unit of risk. If you would invest 10,370 in China Mobile Limited on September 26, 2024 and sell it today you would earn a total of 1,119 from holding China Mobile Limited or generate 10.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Beijing Mainstreets Investment
Performance |
| Timeline |
| China Mobile Limited |
| Beijing Mainstreets |
China Mobile and Beijing Mainstreets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Beijing Mainstreets
The main advantage of trading using opposite China Mobile and Beijing Mainstreets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Beijing Mainstreets 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 Beijing Mainstreets will offset losses from the drop in Beijing Mainstreets' 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 |
| Beijing Mainstreets vs. PetroChina Co Ltd | Beijing Mainstreets vs. China Mobile Limited | Beijing Mainstreets vs. CNOOC Limited | Beijing Mainstreets 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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