Correlation Between China Mobile and Jiugui Liquor
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By analyzing existing cross correlation between China Mobile Limited and Jiugui Liquor Co, you can compare the effects of market volatilities on China Mobile and Jiugui Liquor 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 Jiugui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Jiugui Liquor.
Diversification Opportunities for China Mobile and Jiugui Liquor
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Jiugui is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Jiugui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiugui Liquor 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 Jiugui Liquor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiugui Liquor has no effect on the direction of China Mobile i.e., China Mobile and Jiugui Liquor go up and down completely randomly.
Pair Corralation between China Mobile and Jiugui Liquor
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.52 times more return on investment than Jiugui Liquor. However, China Mobile Limited is 1.93 times less risky than Jiugui Liquor. It trades about 0.03 of its potential returns per unit of risk. Jiugui Liquor Co is currently generating about -0.02 per unit of risk. If you would invest 9,690 in China Mobile Limited on August 31, 2024 and sell it today you would earn a total of 948.00 from holding China Mobile Limited or generate 9.78% 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. Jiugui Liquor Co
Performance |
| Timeline |
| China Mobile Limited |
| Jiugui Liquor |
China Mobile and Jiugui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Jiugui Liquor
The main advantage of trading using opposite China Mobile and Jiugui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Jiugui Liquor 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 Jiugui Liquor will offset losses from the drop in Jiugui Liquor's long position.| China Mobile vs. BYD Co Ltd | China Mobile vs. Agricultural Bank of | China Mobile vs. Industrial and Commercial | China Mobile vs. China State Construction |
| Jiugui Liquor vs. Sichuan Fulin Transportation | Jiugui Liquor vs. China Asset Management | Jiugui Liquor vs. Sanbo Hospital Management | Jiugui Liquor vs. Northern United Publishing |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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