Correlation Between China Mobile and Sichuan Fulin
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Mobile Limited and Sichuan Fulin Transportation, you can compare the effects of market volatilities on China Mobile and Sichuan Fulin 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 Sichuan Fulin. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Sichuan Fulin.
Diversification Opportunities for China Mobile and Sichuan Fulin
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Sichuan is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Sichuan Fulin Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Fulin Transp 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 Sichuan Fulin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Fulin Transp has no effect on the direction of China Mobile i.e., China Mobile and Sichuan Fulin go up and down completely randomly.
Pair Corralation between China Mobile and Sichuan Fulin
Assuming the 90 days trading horizon China Mobile Limited is expected to under-perform the Sichuan Fulin. But the stock apears to be less risky and, when comparing its historical volatility, China Mobile Limited is 2.53 times less risky than Sichuan Fulin. The stock trades about -0.01 of its potential returns per unit of risk. The Sichuan Fulin Transportation is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 648.00 in Sichuan Fulin Transportation on November 5, 2024 and sell it today you would earn a total of 84.00 from holding Sichuan Fulin Transportation or generate 12.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Sichuan Fulin Transportation
Performance |
| Timeline |
| China Mobile Limited |
| Sichuan Fulin Transp |
China Mobile and Sichuan Fulin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Sichuan Fulin
The main advantage of trading using opposite China Mobile and Sichuan Fulin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Sichuan Fulin 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 Sichuan Fulin will offset losses from the drop in Sichuan Fulin's long position.| China Mobile vs. ButOne Information Corp | China Mobile vs. Sublime China Information | China Mobile vs. Bonree Data Technology | China Mobile vs. Anhui Transport Consulting |
| Sichuan Fulin vs. Jinxiandai Information Industry | Sichuan Fulin vs. Lutian Machinery Co | Sichuan Fulin vs. Linzhou Heavy Machinery | Sichuan Fulin vs. Longmaster Information Tech |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |