Correlation Between China Mobile and Qingdao Choho
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By analyzing existing cross correlation between China Mobile Limited and Qingdao Choho Industrial, you can compare the effects of market volatilities on China Mobile and Qingdao Choho 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 Qingdao Choho. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Qingdao Choho.
Diversification Opportunities for China Mobile and Qingdao Choho
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Qingdao is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Qingdao Choho Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Choho Industrial 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 Qingdao Choho. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Choho Industrial has no effect on the direction of China Mobile i.e., China Mobile and Qingdao Choho go up and down completely randomly.
Pair Corralation between China Mobile and Qingdao Choho
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.52 times more return on investment than Qingdao Choho. However, China Mobile Limited is 1.93 times less risky than Qingdao Choho. It trades about 0.14 of its potential returns per unit of risk. Qingdao Choho Industrial is currently generating about 0.06 per unit of risk. If you would invest 10,282 in China Mobile Limited on September 3, 2024 and sell it today you would earn a total of 356.00 from holding China Mobile Limited or generate 3.46% 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. Qingdao Choho Industrial
Performance |
| Timeline |
| China Mobile Limited |
| Qingdao Choho Industrial |
China Mobile and Qingdao Choho Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Qingdao Choho
The main advantage of trading using opposite China Mobile and Qingdao Choho positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Qingdao Choho 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 Qingdao Choho will offset losses from the drop in Qingdao Choho's long position.| China Mobile vs. Andon Health Co | China Mobile vs. Jiangsu Yueda Investment | China Mobile vs. Impulse Qingdao Health | China Mobile vs. Metro Investment Development |
| Qingdao Choho vs. Zhejiang Construction Investment | Qingdao Choho vs. Puyang Huicheng Electronic | Qingdao Choho vs. Epoxy Base Electronic | Qingdao Choho vs. Dongnan Electronics Co |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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