Correlation Between China Mobile and Blue Sail
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By analyzing existing cross correlation between China Mobile Limited and Blue Sail Medical, you can compare the effects of market volatilities on China Mobile and Blue Sail 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 Blue Sail. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Blue Sail.
Diversification Opportunities for China Mobile and Blue Sail
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Blue is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Blue Sail Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Sail Medical 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 Blue Sail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Sail Medical has no effect on the direction of China Mobile i.e., China Mobile and Blue Sail go up and down completely randomly.
Pair Corralation between China Mobile and Blue Sail
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.94 times more return on investment than Blue Sail. However, China Mobile Limited is 1.06 times less risky than Blue Sail. It trades about 0.05 of its potential returns per unit of risk. Blue Sail Medical is currently generating about -0.04 per unit of risk. If you would invest 7,227 in China Mobile Limited on September 2, 2024 and sell it today you would earn a total of 3,411 from holding China Mobile Limited or generate 47.2% 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. Blue Sail Medical
Performance |
| Timeline |
| China Mobile Limited |
| Blue Sail Medical |
China Mobile and Blue Sail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Blue Sail
The main advantage of trading using opposite China Mobile and Blue Sail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Blue Sail 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 Blue Sail will offset losses from the drop in Blue Sail's long position.| China Mobile vs. Hubei Huaqiang High Tech | China Mobile vs. Songz Automobile Air | China Mobile vs. Jinhe Biotechnology Co | China Mobile vs. Changchun Engley Automobile |
| Blue Sail vs. Nanjing Putian Telecommunications | Blue Sail vs. Shenzhen Hifuture Electric | Blue Sail vs. Tianjin Realty Development | Blue Sail vs. Shenyang Huitian Thermal |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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