Correlation Between China Mobile and Tianjin Pengling
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By analyzing existing cross correlation between China Mobile Limited and Tianjin Pengling Rubber, you can compare the effects of market volatilities on China Mobile and Tianjin Pengling 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 Tianjin Pengling. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Tianjin Pengling.
Diversification Opportunities for China Mobile and Tianjin Pengling
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Tianjin is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Tianjin Pengling Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Pengling Rubber 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 Tianjin Pengling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Pengling Rubber has no effect on the direction of China Mobile i.e., China Mobile and Tianjin Pengling go up and down completely randomly.
Pair Corralation between China Mobile and Tianjin Pengling
Assuming the 90 days trading horizon China Mobile is expected to generate 4.08 times less return on investment than Tianjin Pengling. But when comparing it to its historical volatility, China Mobile Limited is 2.22 times less risky than Tianjin Pengling. It trades about 0.05 of its potential returns per unit of risk. Tianjin Pengling Rubber is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 393.00 in Tianjin Pengling Rubber on September 3, 2024 and sell it today you would earn a total of 118.00 from holding Tianjin Pengling Rubber or generate 30.03% 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. Tianjin Pengling Rubber
Performance |
| Timeline |
| China Mobile Limited |
| Tianjin Pengling Rubber |
China Mobile and Tianjin Pengling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Tianjin Pengling
The main advantage of trading using opposite China Mobile and Tianjin Pengling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Tianjin Pengling 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 Tianjin Pengling will offset losses from the drop in Tianjin Pengling'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 |
| Tianjin Pengling vs. PetroChina Co Ltd | Tianjin Pengling vs. China Mobile Limited | Tianjin Pengling vs. Industrial and Commercial | Tianjin Pengling vs. China Life Insurance |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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