Correlation Between China Mobile and Vanfund Urban
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By analyzing existing cross correlation between China Mobile Limited and Vanfund Urban Investment, you can compare the effects of market volatilities on China Mobile and Vanfund Urban 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 Vanfund Urban. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Vanfund Urban.
Diversification Opportunities for China Mobile and Vanfund Urban
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Vanfund is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Vanfund Urban Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanfund Urban Investment 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 Vanfund Urban. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanfund Urban Investment has no effect on the direction of China Mobile i.e., China Mobile and Vanfund Urban go up and down completely randomly.
Pair Corralation between China Mobile and Vanfund Urban
Assuming the 90 days trading horizon China Mobile is expected to generate 3.63 times less return on investment than Vanfund Urban. But when comparing it to its historical volatility, China Mobile Limited is 3.08 times less risky than Vanfund Urban. It trades about 0.02 of its potential returns per unit of risk. Vanfund Urban Investment is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 520.00 in Vanfund Urban Investment on August 29, 2024 and sell it today you would earn a total of 28.00 from holding Vanfund Urban Investment or generate 5.38% 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. Vanfund Urban Investment
Performance |
| Timeline |
| China Mobile Limited |
| Vanfund Urban Investment |
China Mobile and Vanfund Urban Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Vanfund Urban
The main advantage of trading using opposite China Mobile and Vanfund Urban positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Vanfund Urban 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 Vanfund Urban will offset losses from the drop in Vanfund Urban's long position.| China Mobile vs. Industrial and Commercial | China Mobile vs. Agricultural Bank of | China Mobile vs. China Construction Bank | China Mobile vs. Bank of China |
| Vanfund Urban vs. PetroChina Co Ltd | Vanfund Urban vs. China State Construction | Vanfund Urban vs. China Mobile Limited | Vanfund Urban vs. Industrial and Commercial |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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