Correlation Between China Mobile and By Health
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By analyzing existing cross correlation between China Mobile Limited and By health, you can compare the effects of market volatilities on China Mobile and By Health 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 By Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and By Health.
Diversification Opportunities for China Mobile and By Health
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and 300146 is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and By health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on By health 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 By Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of By health has no effect on the direction of China Mobile i.e., China Mobile and By Health go up and down completely randomly.
Pair Corralation between China Mobile and By Health
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.55 times more return on investment than By Health. However, China Mobile Limited is 1.82 times less risky than By Health. It trades about 0.12 of its potential returns per unit of risk. By health is currently generating about -0.11 per unit of risk. If you would invest 10,229 in China Mobile Limited on August 29, 2024 and sell it today you would earn a total of 313.00 from holding China Mobile Limited or generate 3.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. By health
Performance |
| Timeline |
| China Mobile Limited |
| By health |
China Mobile and By Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and By Health
The main advantage of trading using opposite China Mobile and By Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, By Health 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 By Health will offset losses from the drop in By Health's long position.| China Mobile vs. Industrial and Commercial | China Mobile vs. Agricultural Bank of | China Mobile vs. China Construction Bank | China Mobile vs. Bank of China |
| By Health vs. PetroChina Co Ltd | By Health vs. China Mobile Limited | By Health vs. Ping An Insurance | By Health vs. China Petroleum Chemical |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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