Correlation Between China Mobile and Dongguan Chitwing
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By analyzing existing cross correlation between China Mobile Limited and Dongguan Chitwing Technology, you can compare the effects of market volatilities on China Mobile and Dongguan Chitwing 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 Dongguan Chitwing. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Dongguan Chitwing.
Diversification Opportunities for China Mobile and Dongguan Chitwing
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and Dongguan is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Dongguan Chitwing Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongguan Chitwing 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 Dongguan Chitwing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongguan Chitwing has no effect on the direction of China Mobile i.e., China Mobile and Dongguan Chitwing go up and down completely randomly.
Pair Corralation between China Mobile and Dongguan Chitwing
Assuming the 90 days trading horizon China Mobile Limited is expected to under-perform the Dongguan Chitwing. But the stock apears to be less risky and, when comparing its historical volatility, China Mobile Limited is 3.78 times less risky than Dongguan Chitwing. The stock trades about -0.02 of its potential returns per unit of risk. The Dongguan Chitwing Technology is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 2,242 in Dongguan Chitwing Technology on August 24, 2024 and sell it today you would earn a total of 478.00 from holding Dongguan Chitwing Technology or generate 21.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Dongguan Chitwing Technology
Performance |
| Timeline |
| China Mobile Limited |
| Dongguan Chitwing |
China Mobile and Dongguan Chitwing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Dongguan Chitwing
The main advantage of trading using opposite China Mobile and Dongguan Chitwing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Dongguan Chitwing 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 Dongguan Chitwing will offset losses from the drop in Dongguan Chitwing's long position.| China Mobile vs. Kweichow Moutai Co | China Mobile vs. Contemporary Amperex Technology | China Mobile vs. G bits Network Technology | China Mobile vs. BYD Co Ltd |
| Dongguan Chitwing vs. Industrial and Commercial | Dongguan Chitwing vs. China Construction Bank | Dongguan Chitwing vs. Agricultural Bank of | Dongguan Chitwing vs. Bank of China |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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