Correlation Between China Mobile and Beijing New
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By analyzing existing cross correlation between China Mobile Limited and Beijing New Building, you can compare the effects of market volatilities on China Mobile and Beijing New 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 New. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Beijing New.
Diversification Opportunities for China Mobile and Beijing New
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Beijing is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Beijing New Building in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing New Building 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 New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing New Building has no effect on the direction of China Mobile i.e., China Mobile and Beijing New go up and down completely randomly.
Pair Corralation between China Mobile and Beijing New
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.56 times more return on investment than Beijing New. However, China Mobile Limited is 1.78 times less risky than Beijing New. It trades about 0.04 of its potential returns per unit of risk. Beijing New Building is currently generating about -0.02 per unit of risk. If you would invest 9,970 in China Mobile Limited on September 1, 2024 and sell it today you would earn a total of 668.00 from holding China Mobile Limited or generate 6.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
China Mobile Limited vs. Beijing New Building
Performance |
| Timeline |
| China Mobile Limited |
| Beijing New Building |
China Mobile and Beijing New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Beijing New
The main advantage of trading using opposite China Mobile and Beijing New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Beijing New 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 New will offset losses from the drop in Beijing New's long position.| China Mobile vs. Kweichow Moutai Co | China Mobile vs. NAURA Technology Group | China Mobile vs. APT Medical | China Mobile vs. BYD Co Ltd |
| Beijing New vs. Industrial and Commercial | Beijing New vs. Agricultural Bank of | Beijing New vs. China Construction Bank | Beijing New vs. Bank of China |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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