Correlation Between China Mobile and Jiangxi Naipu
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By analyzing existing cross correlation between China Mobile Limited and Jiangxi Naipu Mining, you can compare the effects of market volatilities on China Mobile and Jiangxi Naipu 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 Jiangxi Naipu. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Jiangxi Naipu.
Diversification Opportunities for China Mobile and Jiangxi Naipu
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Jiangxi is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Jiangxi Naipu Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Naipu Mining 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 Jiangxi Naipu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Naipu Mining has no effect on the direction of China Mobile i.e., China Mobile and Jiangxi Naipu go up and down completely randomly.
Pair Corralation between China Mobile and Jiangxi Naipu
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.6 times more return on investment than Jiangxi Naipu. However, China Mobile Limited is 1.68 times less risky than Jiangxi Naipu. It trades about -0.24 of its potential returns per unit of risk. Jiangxi Naipu Mining is currently generating about -0.18 per unit of risk. If you would invest 11,385 in China Mobile Limited on October 24, 2024 and sell it today you would lose (665.00) from holding China Mobile Limited or give up 5.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Jiangxi Naipu Mining
Performance |
| Timeline |
| China Mobile Limited |
| Jiangxi Naipu Mining |
China Mobile and Jiangxi Naipu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Jiangxi Naipu
The main advantage of trading using opposite China Mobile and Jiangxi Naipu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Jiangxi Naipu 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 Jiangxi Naipu will offset losses from the drop in Jiangxi Naipu's long position.| China Mobile vs. Giantec Semiconductor Corp | China Mobile vs. Ningbo Fujia Industrial | China Mobile vs. Shannon Semiconductor Technology | China Mobile vs. Guangdong Jingyi Metal |
| Jiangxi Naipu vs. ZJBC Information Technology | Jiangxi Naipu vs. Beijing Sanyuan Foods | Jiangxi Naipu vs. Eastroc Beverage Group | Jiangxi Naipu vs. HaiXin Foods 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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