Correlation Between China Mobile and LianChuang Electronic
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By analyzing existing cross correlation between China Mobile Limited and LianChuang Electronic Technology, you can compare the effects of market volatilities on China Mobile and LianChuang Electronic 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 LianChuang Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and LianChuang Electronic.
Diversification Opportunities for China Mobile and LianChuang Electronic
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and LianChuang is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and LianChuang Electronic Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LianChuang Electronic 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 LianChuang Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LianChuang Electronic has no effect on the direction of China Mobile i.e., China Mobile and LianChuang Electronic go up and down completely randomly.
Pair Corralation between China Mobile and LianChuang Electronic
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.31 times more return on investment than LianChuang Electronic. However, China Mobile Limited is 3.24 times less risky than LianChuang Electronic. It trades about 0.17 of its potential returns per unit of risk. LianChuang Electronic Technology is currently generating about -0.03 per unit of risk. If you would invest 10,204 in China Mobile Limited on September 12, 2024 and sell it today you would earn a total of 454.00 from holding China Mobile Limited or generate 4.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. LianChuang Electronic Technolo
Performance |
| Timeline |
| China Mobile Limited |
| LianChuang Electronic |
China Mobile and LianChuang Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and LianChuang Electronic
The main advantage of trading using opposite China Mobile and LianChuang Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, LianChuang Electronic 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 LianChuang Electronic will offset losses from the drop in LianChuang Electronic's long position.| China Mobile vs. Kweichow Moutai Co | China Mobile vs. Shenzhen Mindray Bio Medical | China Mobile vs. G bits Network Technology | China Mobile vs. Beijing Roborock Technology |
| LianChuang Electronic vs. Gansu Jiu Steel | LianChuang Electronic vs. Shandong Mining Machinery | LianChuang Electronic vs. Aba Chemicals Corp | LianChuang Electronic vs. BlueFocus Communication Group |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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