Correlation Between China Mobile and Gansu Yasheng
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By analyzing existing cross correlation between China Mobile Limited and Gansu Yasheng Industrial, you can compare the effects of market volatilities on China Mobile and Gansu Yasheng 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 Gansu Yasheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Gansu Yasheng.
Diversification Opportunities for China Mobile and Gansu Yasheng
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Gansu is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Gansu Yasheng Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Yasheng Industrial 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 Gansu Yasheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Yasheng Industrial has no effect on the direction of China Mobile i.e., China Mobile and Gansu Yasheng go up and down completely randomly.
Pair Corralation between China Mobile and Gansu Yasheng
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.81 times more return on investment than Gansu Yasheng. However, China Mobile Limited is 1.23 times less risky than Gansu Yasheng. It trades about 0.02 of its potential returns per unit of risk. Gansu Yasheng Industrial is currently generating about 0.01 per unit of risk. If you would invest 9,980 in China Mobile Limited on September 2, 2024 and sell it today you would earn a total of 658.00 from holding China Mobile Limited or generate 6.59% 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. Gansu Yasheng Industrial
Performance |
| Timeline |
| China Mobile Limited |
| Gansu Yasheng Industrial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
China Mobile and Gansu Yasheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Gansu Yasheng
The main advantage of trading using opposite China Mobile and Gansu Yasheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Gansu Yasheng 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 Gansu Yasheng will offset losses from the drop in Gansu Yasheng's long position.| China Mobile vs. Hubei Huaqiang High Tech | China Mobile vs. Songz Automobile Air | China Mobile vs. Jinhe Biotechnology Co | China Mobile vs. Changchun Engley Automobile |
| Gansu Yasheng vs. Hunan TV Broadcast | Gansu Yasheng vs. Zhejiang Yongjin Metal | Gansu Yasheng vs. RoadMain T Co | Gansu Yasheng vs. Hubeiyichang Transportation Group |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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