Correlation Between China Mobile and Guangdong Jinma
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By analyzing existing cross correlation between China Mobile Limited and Guangdong Jinma Entertainment, you can compare the effects of market volatilities on China Mobile and Guangdong Jinma 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 Guangdong Jinma. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Guangdong Jinma.
Diversification Opportunities for China Mobile and Guangdong Jinma
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Guangdong is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Guangdong Jinma Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jinma Ente 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 Guangdong Jinma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jinma Ente has no effect on the direction of China Mobile i.e., China Mobile and Guangdong Jinma go up and down completely randomly.
Pair Corralation between China Mobile and Guangdong Jinma
Assuming the 90 days trading horizon China Mobile is expected to generate 2.73 times less return on investment than Guangdong Jinma. But when comparing it to its historical volatility, China Mobile Limited is 2.44 times less risky than Guangdong Jinma. It trades about 0.05 of its potential returns per unit of risk. Guangdong Jinma Entertainment is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,437 in Guangdong Jinma Entertainment on September 3, 2024 and sell it today you would earn a total of 224.00 from holding Guangdong Jinma Entertainment or generate 15.59% 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. Guangdong Jinma Entertainment
Performance |
| Timeline |
| China Mobile Limited |
| Guangdong Jinma Ente |
China Mobile and Guangdong Jinma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Guangdong Jinma
The main advantage of trading using opposite China Mobile and Guangdong Jinma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Guangdong Jinma 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 Guangdong Jinma will offset losses from the drop in Guangdong Jinma'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 |
| Guangdong Jinma vs. PetroChina Co Ltd | Guangdong Jinma vs. China Mobile Limited | Guangdong Jinma vs. Industrial and Commercial | Guangdong Jinma 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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