Correlation Between China Mobile and China Minmetals
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By analyzing existing cross correlation between China Mobile Limited and China Minmetals Rare, you can compare the effects of market volatilities on China Mobile and China Minmetals 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 China Minmetals. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and China Minmetals.
Diversification Opportunities for China Mobile and China Minmetals
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and China is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and China Minmetals Rare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Minmetals Rare 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 China Minmetals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Minmetals Rare has no effect on the direction of China Mobile i.e., China Mobile and China Minmetals go up and down completely randomly.
Pair Corralation between China Mobile and China Minmetals
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.7 times more return on investment than China Minmetals. However, China Mobile Limited is 1.43 times less risky than China Minmetals. It trades about 0.05 of its potential returns per unit of risk. China Minmetals Rare is currently generating about -0.01 per unit of risk. If you would invest 7,467 in China Mobile Limited on September 4, 2024 and sell it today you would earn a total of 3,080 from holding China Mobile Limited or generate 41.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. China Minmetals Rare
Performance |
| Timeline |
| China Mobile Limited |
| China Minmetals Rare |
China Mobile and China Minmetals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and China Minmetals
The main advantage of trading using opposite China Mobile and China Minmetals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, China Minmetals 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 China Minmetals will offset losses from the drop in China Minmetals' long position.| China Mobile vs. New China Life | China Mobile vs. Ming Yang Smart | China Mobile vs. 159681 | China Mobile vs. 159005 |
| China Minmetals vs. Zijin Mining Group | China Minmetals vs. Wanhua Chemical Group | China Minmetals vs. Baoshan Iron Steel | China Minmetals vs. Rongsheng Petrochemical Co |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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