Correlation Between China Mobile and State Grid
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By analyzing existing cross correlation between China Mobile Limited and State Grid InformationCommunication, you can compare the effects of market volatilities on China Mobile and State Grid 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 State Grid. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and State Grid.
Diversification Opportunities for China Mobile and State Grid
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and State is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and State Grid InformationCommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Grid Informati 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 State Grid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Grid Informati has no effect on the direction of China Mobile i.e., China Mobile and State Grid go up and down completely randomly.
Pair Corralation between China Mobile and State Grid
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.47 times more return on investment than State Grid. However, China Mobile Limited is 2.12 times less risky than State Grid. It trades about 0.06 of its potential returns per unit of risk. State Grid InformationCommunication is currently generating about 0.02 per unit of risk. If you would invest 9,260 in China Mobile Limited on November 5, 2024 and sell it today you would earn a total of 1,837 from holding China Mobile Limited or generate 19.84% 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. State Grid InformationCommunic
Performance |
| Timeline |
| China Mobile Limited |
| State Grid Informati |
China Mobile and State Grid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and State Grid
The main advantage of trading using opposite China Mobile and State Grid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, State Grid 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 State Grid will offset losses from the drop in State Grid's long position.| China Mobile vs. YiDong Electronics Technology | China Mobile vs. Fuzhou Rockchip Electronics | China Mobile vs. Yuanjie Semiconductor Technology | China Mobile vs. Epoxy Base Electronic |
| State Grid vs. China Petroleum Chemical | State Grid vs. PetroChina Co Ltd | State Grid vs. China State Construction | State Grid vs. China Railway 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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