Correlation Between China Mobile and Fujian Longzhou
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By analyzing existing cross correlation between China Mobile Limited and Fujian Longzhou Transportation, you can compare the effects of market volatilities on China Mobile and Fujian Longzhou 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 Fujian Longzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Fujian Longzhou.
Diversification Opportunities for China Mobile and Fujian Longzhou
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Fujian is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Fujian Longzhou Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Longzhou Tran 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 Fujian Longzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Longzhou Tran has no effect on the direction of China Mobile i.e., China Mobile and Fujian Longzhou go up and down completely randomly.
Pair Corralation between China Mobile and Fujian Longzhou
Assuming the 90 days trading horizon China Mobile is expected to generate 14.24 times less return on investment than Fujian Longzhou. But when comparing it to its historical volatility, China Mobile Limited is 1.24 times less risky than Fujian Longzhou. It trades about 0.03 of its potential returns per unit of risk. Fujian Longzhou Transportation is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 405.00 in Fujian Longzhou Transportation on November 27, 2024 and sell it today you would earn a total of 37.00 from holding Fujian Longzhou Transportation or generate 9.14% 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. Fujian Longzhou Transportation
Performance |
| Timeline |
| China Mobile Limited |
| Fujian Longzhou Tran |
China Mobile and Fujian Longzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Fujian Longzhou
The main advantage of trading using opposite China Mobile and Fujian Longzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Fujian Longzhou 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 Fujian Longzhou will offset losses from the drop in Fujian Longzhou'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 |
| Fujian Longzhou vs. Tianjin Capital Environmental | Fujian Longzhou vs. APT Medical | Fujian Longzhou vs. Tongxing Environmental Protection | Fujian Longzhou vs. Tinavi Medical Technologies |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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