Correlation Between China Mobile and Changchun High
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By analyzing existing cross correlation between China Mobile Limited and Changchun High New, you can compare the effects of market volatilities on China Mobile and Changchun High 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 Changchun High. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Changchun High.
Diversification Opportunities for China Mobile and Changchun High
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Changchun is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Changchun High New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun High New 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 Changchun High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun High New has no effect on the direction of China Mobile i.e., China Mobile and Changchun High go up and down completely randomly.
Pair Corralation between China Mobile and Changchun High
Assuming the 90 days trading horizon China Mobile Limited is expected to under-perform the Changchun High. But the stock apears to be less risky and, when comparing its historical volatility, China Mobile Limited is 2.31 times less risky than Changchun High. The stock trades about -0.02 of its potential returns per unit of risk. The Changchun High New is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 10,452 in Changchun High New on August 24, 2024 and sell it today you would earn a total of 849.00 from holding Changchun High New or generate 8.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Changchun High New
Performance |
| Timeline |
| China Mobile Limited |
| Changchun High New |
China Mobile and Changchun High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Changchun High
The main advantage of trading using opposite China Mobile and Changchun High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Changchun High 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 Changchun High will offset losses from the drop in Changchun High's long position.| China Mobile vs. Kweichow Moutai Co | China Mobile vs. Contemporary Amperex Technology | China Mobile vs. G bits Network Technology | China Mobile vs. BYD Co Ltd |
| Changchun High vs. Industrial and Commercial | Changchun High vs. China Construction Bank | Changchun High vs. Bank of China | Changchun High vs. Agricultural Bank of |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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