Correlation Between China Mobile and Xiandai Investment
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By analyzing existing cross correlation between China Mobile Limited and Xiandai Investment Co, you can compare the effects of market volatilities on China Mobile and Xiandai Investment 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 Xiandai Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Xiandai Investment.
Diversification Opportunities for China Mobile and Xiandai Investment
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and Xiandai is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Xiandai Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiandai Investment 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 Xiandai Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiandai Investment has no effect on the direction of China Mobile i.e., China Mobile and Xiandai Investment go up and down completely randomly.
Pair Corralation between China Mobile and Xiandai Investment
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.57 times more return on investment than Xiandai Investment. However, China Mobile Limited is 1.75 times less risky than Xiandai Investment. It trades about 0.1 of its potential returns per unit of risk. Xiandai Investment Co is currently generating about 0.01 per unit of risk. If you would invest 10,229 in China Mobile Limited on October 26, 2024 and sell it today you would earn a total of 726.00 from holding China Mobile Limited or generate 7.1% 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. Xiandai Investment Co
Performance |
| Timeline |
| China Mobile Limited |
| Xiandai Investment |
China Mobile and Xiandai Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Xiandai Investment
The main advantage of trading using opposite China Mobile and Xiandai Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Xiandai Investment 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 Xiandai Investment will offset losses from the drop in Xiandai Investment's long position.| China Mobile vs. Guangdong Jingyi Metal | China Mobile vs. Meinian Onehealth Healthcare | China Mobile vs. Mingchen Health Co | China Mobile vs. Shandong Hongchuang Aluminum |
| Xiandai Investment vs. PetroChina Co Ltd | Xiandai Investment vs. China Mobile Limited | Xiandai Investment vs. CNOOC Limited | Xiandai Investment vs. Ping An Insurance |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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