Correlation Between China Mobile and Xinjiang Tianshun
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By analyzing existing cross correlation between China Mobile Limited and Xinjiang Tianshun Supply, you can compare the effects of market volatilities on China Mobile and Xinjiang Tianshun 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 Xinjiang Tianshun. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Xinjiang Tianshun.
Diversification Opportunities for China Mobile and Xinjiang Tianshun
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and Xinjiang is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Xinjiang Tianshun Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianshun Supply 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 Xinjiang Tianshun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianshun Supply has no effect on the direction of China Mobile i.e., China Mobile and Xinjiang Tianshun go up and down completely randomly.
Pair Corralation between China Mobile and Xinjiang Tianshun
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.61 times more return on investment than Xinjiang Tianshun. However, China Mobile Limited is 1.63 times less risky than Xinjiang Tianshun. It trades about 0.05 of its potential returns per unit of risk. Xinjiang Tianshun Supply is currently generating about -0.03 per unit of risk. If you would invest 7,408 in China Mobile Limited on October 16, 2024 and sell it today you would earn a total of 3,432 from holding China Mobile Limited or generate 46.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Xinjiang Tianshun Supply
Performance |
| Timeline |
| China Mobile Limited |
| Xinjiang Tianshun Supply |
China Mobile and Xinjiang Tianshun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Xinjiang Tianshun
The main advantage of trading using opposite China Mobile and Xinjiang Tianshun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Xinjiang Tianshun 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 Xinjiang Tianshun will offset losses from the drop in Xinjiang Tianshun'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 |
| Xinjiang Tianshun vs. Tongyu Communication | Xinjiang Tianshun vs. China Mobile Limited | Xinjiang Tianshun vs. Haima Automobile Group | Xinjiang Tianshun vs. Beijing Bewinner Communications |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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