Correlation Between China Mobile and Zoje Resources
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By analyzing existing cross correlation between China Mobile Limited and Zoje Resources Investment, you can compare the effects of market volatilities on China Mobile and Zoje Resources 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 Zoje Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Zoje Resources.
Diversification Opportunities for China Mobile and Zoje Resources
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Zoje is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Zoje Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoje Resources 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 Zoje Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoje Resources Investment has no effect on the direction of China Mobile i.e., China Mobile and Zoje Resources go up and down completely randomly.
Pair Corralation between China Mobile and Zoje Resources
Assuming the 90 days trading horizon China Mobile is expected to generate 9.18 times less return on investment than Zoje Resources. But when comparing it to its historical volatility, China Mobile Limited is 2.72 times less risky than Zoje Resources. It trades about 0.03 of its potential returns per unit of risk. Zoje Resources Investment is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 157.00 in Zoje Resources Investment on December 4, 2024 and sell it today you would earn a total of 83.00 from holding Zoje Resources Investment or generate 52.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Zoje Resources Investment
Performance |
| Timeline |
| China Mobile Limited |
| Zoje Resources Investment |
China Mobile and Zoje Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Zoje Resources
The main advantage of trading using opposite China Mobile and Zoje Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Zoje Resources 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 Zoje Resources will offset losses from the drop in Zoje Resources' long position.| China Mobile vs. AnShan Heavy Duty | China Mobile vs. Hangzhou Zhongya Machinery | China Mobile vs. Iat Automobile Technology | China Mobile vs. Allied Machinery Co |
| Zoje Resources vs. Zhongrun Resources Investment | Zoje Resources vs. Xiandai Investment Co | Zoje Resources vs. Nuode Investment Co | Zoje Resources vs. Industrial Bank 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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