Correlation Between China Mobile and China Eastern
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By analyzing existing cross correlation between China Mobile Limited and China Eastern Airlines, you can compare the effects of market volatilities on China Mobile and China Eastern 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 China Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and China Eastern.
Diversification Opportunities for China Mobile and China Eastern
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and China is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and China Eastern Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Eastern Airlines 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 China Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Eastern Airlines has no effect on the direction of China Mobile i.e., China Mobile and China Eastern go up and down completely randomly.
Pair Corralation between China Mobile and China Eastern
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 1.24 times more return on investment than China Eastern. However, China Mobile is 1.24 times more volatile than China Eastern Airlines. It trades about -0.08 of its potential returns per unit of risk. China Eastern Airlines is currently generating about -0.47 per unit of risk. If you would invest 11,215 in China Mobile Limited on October 15, 2024 and sell it today you would lose (285.00) from holding China Mobile Limited or give up 2.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. China Eastern Airlines
Performance |
| Timeline |
| China Mobile Limited |
| China Eastern Airlines |
China Mobile and China Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and China Eastern
The main advantage of trading using opposite China Mobile and China Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, China Eastern 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 China Eastern will offset losses from the drop in China Eastern's long position.| China Mobile vs. Jinsanjiang Silicon Material | China Mobile vs. Penyao Environmental Protection | China Mobile vs. Xilong Chemical Co | China Mobile vs. Miracll Chemicals Co |
| China Eastern vs. BYD Co Ltd | China Eastern vs. China Mobile Limited | China Eastern vs. Agricultural Bank of | China Eastern vs. Industrial and Commercial |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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