Correlation Between China Mobile and Yantai Changyu
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By analyzing existing cross correlation between China Mobile Limited and Yantai Changyu Pioneer, you can compare the effects of market volatilities on China Mobile and Yantai Changyu 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 Yantai Changyu. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Yantai Changyu.
Diversification Opportunities for China Mobile and Yantai Changyu
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Yantai is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Yantai Changyu Pioneer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yantai Changyu Pioneer 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 Yantai Changyu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yantai Changyu Pioneer has no effect on the direction of China Mobile i.e., China Mobile and Yantai Changyu go up and down completely randomly.
Pair Corralation between China Mobile and Yantai Changyu
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.6 times more return on investment than Yantai Changyu. However, China Mobile Limited is 1.66 times less risky than Yantai Changyu. It trades about 0.15 of its potential returns per unit of risk. Yantai Changyu Pioneer is currently generating about 0.0 per unit of risk. If you would invest 10,220 in China Mobile Limited on August 30, 2024 and sell it today you would earn a total of 385.00 from holding China Mobile Limited or generate 3.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Yantai Changyu Pioneer
Performance |
| Timeline |
| China Mobile Limited |
| Yantai Changyu Pioneer |
China Mobile and Yantai Changyu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Yantai Changyu
The main advantage of trading using opposite China Mobile and Yantai Changyu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Yantai Changyu 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 Yantai Changyu will offset losses from the drop in Yantai Changyu's long position.| China Mobile vs. Cultural Investment Holdings | China Mobile vs. Gome Telecom Equipment | China Mobile vs. Bus Online Co | China Mobile vs. Holitech Technology Co |
| Yantai Changyu vs. Industrial and Commercial | Yantai Changyu vs. Kweichow Moutai Co | Yantai Changyu vs. Agricultural Bank of | Yantai Changyu vs. China Mobile Limited |
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 Stocks Directory module to find actively traded stocks across global markets.
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