Correlation Between China Mobile and Xizi Clean
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By analyzing existing cross correlation between China Mobile Limited and Xizi Clean Energy, you can compare the effects of market volatilities on China Mobile and Xizi Clean 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 Xizi Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Xizi Clean.
Diversification Opportunities for China Mobile and Xizi Clean
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Xizi is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Xizi Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xizi Clean Energy 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 Xizi Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xizi Clean Energy has no effect on the direction of China Mobile i.e., China Mobile and Xizi Clean go up and down completely randomly.
Pair Corralation between China Mobile and Xizi Clean
Assuming the 90 days trading horizon China Mobile is expected to generate 8.82 times less return on investment than Xizi Clean. In addition to that, China Mobile is 1.25 times more volatile than Xizi Clean Energy. It trades about 0.03 of its total potential returns per unit of risk. Xizi Clean Energy is currently generating about 0.29 per unit of volatility. If you would invest 1,225 in Xizi Clean Energy on November 27, 2024 and sell it today you would earn a total of 69.00 from holding Xizi Clean Energy or generate 5.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Xizi Clean Energy
Performance |
| Timeline |
| China Mobile Limited |
| Xizi Clean Energy |
China Mobile and Xizi Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Xizi Clean
The main advantage of trading using opposite China Mobile and Xizi Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Xizi Clean 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 Xizi Clean will offset losses from the drop in Xizi Clean's long position.| China Mobile vs. Caihong Display Devices | China Mobile vs. Beijing Kingsoft Office | China Mobile vs. Suofeiya Home Collection | China Mobile vs. Hua Hong Semiconductor |
| Xizi Clean vs. Fujian Anjoy Foods | Xizi Clean vs. Shanghai Ziyan Foods | Xizi Clean vs. Fangda Special Steel | Xizi Clean vs. Hangzhou Guotai Environmental |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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