Correlation Between China Mobile and Ningbo Tech
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By analyzing existing cross correlation between China Mobile Limited and Ningbo Tech Bank Co, you can compare the effects of market volatilities on China Mobile and Ningbo Tech 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 Ningbo Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Ningbo Tech.
Diversification Opportunities for China Mobile and Ningbo Tech
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and Ningbo is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Ningbo Tech Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Tech Bank 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 Ningbo Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Tech Bank has no effect on the direction of China Mobile i.e., China Mobile and Ningbo Tech go up and down completely randomly.
Pair Corralation between China Mobile and Ningbo Tech
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.68 times more return on investment than Ningbo Tech. However, China Mobile Limited is 1.48 times less risky than Ningbo Tech. It trades about 0.06 of its potential returns per unit of risk. Ningbo Tech Bank Co is currently generating about -0.05 per unit of risk. If you would invest 7,516 in China Mobile Limited on October 31, 2024 and sell it today you would earn a total of 3,581 from holding China Mobile Limited or generate 47.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Ningbo Tech Bank Co
Performance |
| Timeline |
| China Mobile Limited |
| Ningbo Tech Bank |
China Mobile and Ningbo Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Ningbo Tech
The main advantage of trading using opposite China Mobile and Ningbo Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Ningbo Tech 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 Ningbo Tech will offset losses from the drop in Ningbo Tech's long position.| China Mobile vs. Hygon Information Technology | China Mobile vs. Sinofibers Technology Co | China Mobile vs. Hangzhou Gisway Information | China Mobile vs. Emdoor Information Co |
| Ningbo Tech vs. SI TECH Information Technology | Ningbo Tech vs. Guangdong TianYiMa Information | Ningbo Tech vs. Hengli Petrochemical Co | Ningbo Tech vs. HeBei Jinniu Chemical |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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