Correlation Between China Mobile and Zhejiang Tailin
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By analyzing existing cross correlation between China Mobile Limited and Zhejiang Tailin Bioengineering, you can compare the effects of market volatilities on China Mobile and Zhejiang Tailin 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 Zhejiang Tailin. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Zhejiang Tailin.
Diversification Opportunities for China Mobile and Zhejiang Tailin
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Zhejiang is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Zhejiang Tailin Bioengineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Tailin Bioe 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 Zhejiang Tailin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Tailin Bioe has no effect on the direction of China Mobile i.e., China Mobile and Zhejiang Tailin go up and down completely randomly.
Pair Corralation between China Mobile and Zhejiang Tailin
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.61 times more return on investment than Zhejiang Tailin. However, China Mobile Limited is 1.64 times less risky than Zhejiang Tailin. It trades about 0.29 of its potential returns per unit of risk. Zhejiang Tailin Bioengineering is currently generating about -0.25 per unit of risk. If you would invest 10,605 in China Mobile Limited on September 29, 2024 and sell it today you would earn a total of 855.00 from holding China Mobile Limited or generate 8.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Zhejiang Tailin Bioengineering
Performance |
| Timeline |
| China Mobile Limited |
| Zhejiang Tailin Bioe |
China Mobile and Zhejiang Tailin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Zhejiang Tailin
The main advantage of trading using opposite China Mobile and Zhejiang Tailin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Zhejiang Tailin 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 Zhejiang Tailin will offset losses from the drop in Zhejiang Tailin's long position.| China Mobile vs. Chengdu Kanghua Biological | China Mobile vs. Beijing Wantai Biological | China Mobile vs. Suzhou Novoprotein Scientific | China Mobile vs. COL Digital Publishing |
| Zhejiang Tailin vs. Anhui Transport Consulting | Zhejiang Tailin vs. Changjiang Publishing Media | Zhejiang Tailin vs. Southern PublishingMedia Co | Zhejiang Tailin vs. Shanghai Action Education |
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 Stocks Directory module to find actively traded stocks across global markets.
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