Correlation Between China Mobile and Telling Telecommunicatio
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By analyzing existing cross correlation between China Mobile Limited and Telling Telecommunication Holding, you can compare the effects of market volatilities on China Mobile and Telling Telecommunicatio 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 Telling Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Telling Telecommunicatio.
Diversification Opportunities for China Mobile and Telling Telecommunicatio
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and Telling is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Telling Telecommunication Hold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telling Telecommunicatio 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 Telling Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telling Telecommunicatio has no effect on the direction of China Mobile i.e., China Mobile and Telling Telecommunicatio go up and down completely randomly.
Pair Corralation between China Mobile and Telling Telecommunicatio
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.43 times more return on investment than Telling Telecommunicatio. However, China Mobile Limited is 2.34 times less risky than Telling Telecommunicatio. It trades about -0.01 of its potential returns per unit of risk. Telling Telecommunication Holding is currently generating about -0.15 per unit of risk. If you would invest 11,115 in China Mobile Limited on November 6, 2024 and sell it today you would lose (18.00) from holding China Mobile Limited or give up 0.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Telling Telecommunication Hold
Performance |
| Timeline |
| China Mobile Limited |
| Telling Telecommunicatio |
China Mobile and Telling Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Telling Telecommunicatio
The main advantage of trading using opposite China Mobile and Telling Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Telling Telecommunicatio 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 Telling Telecommunicatio will offset losses from the drop in Telling Telecommunicatio's long position.| China Mobile vs. GigaDevice SemiconductorBeiji | China Mobile vs. Xiandai Investment Co | China Mobile vs. Semiconductor Manufacturing Intl | China Mobile vs. Zhejiang Construction Investment |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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