Correlation Between China Mobile and Western Metal
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Mobile Limited and Western Metal Materials, you can compare the effects of market volatilities on China Mobile and Western Metal 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 Western Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Western Metal.
Diversification Opportunities for China Mobile and Western Metal
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Western is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Western Metal Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Metal Materials 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 Western Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Metal Materials has no effect on the direction of China Mobile i.e., China Mobile and Western Metal go up and down completely randomly.
Pair Corralation between China Mobile and Western Metal
Assuming the 90 days trading horizon China Mobile is expected to generate 1.63 times less return on investment than Western Metal. But when comparing it to its historical volatility, China Mobile Limited is 1.92 times less risky than Western Metal. It trades about 0.04 of its potential returns per unit of risk. Western Metal Materials is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,501 in Western Metal Materials on October 16, 2024 and sell it today you would earn a total of 287.00 from holding Western Metal Materials or generate 19.12% 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. Western Metal Materials
Performance |
| Timeline |
| China Mobile Limited |
| Western Metal Materials |
China Mobile and Western Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Western Metal
The main advantage of trading using opposite China Mobile and Western Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Western Metal 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 Western Metal will offset losses from the drop in Western Metal's long position.| China Mobile vs. Shuhua Sports Co | China Mobile vs. Hainan Haiqi Transportation | China Mobile vs. Sportsoul Co Ltd | China Mobile vs. Shandong Longquan Pipeline |
| Western Metal vs. China Mobile Limited | Western Metal vs. Sihui Fuji Electronics | Western Metal vs. Dongguan Tarry Electronics | Western Metal vs. Tongyu Communication |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |