Correlation Between China Mobile and China Sports
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By analyzing existing cross correlation between China Mobile Limited and China Sports Industry, you can compare the effects of market volatilities on China Mobile and China Sports 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 Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and China Sports.
Diversification Opportunities for China Mobile and China Sports
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and China is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and China Sports Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Sports Industry 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 Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Sports Industry has no effect on the direction of China Mobile i.e., China Mobile and China Sports go up and down completely randomly.
Pair Corralation between China Mobile and China Sports
Assuming the 90 days trading horizon China Mobile is expected to generate 1.99 times less return on investment than China Sports. But when comparing it to its historical volatility, China Mobile Limited is 1.8 times less risky than China Sports. It trades about 0.02 of its potential returns per unit of risk. China Sports Industry is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 732.00 in China Sports Industry on October 26, 2024 and sell it today you would earn a total of 30.00 from holding China Sports Industry or generate 4.1% 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. China Sports Industry
Performance |
| Timeline |
| China Mobile Limited |
| China Sports Industry |
China Mobile and China Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and China Sports
The main advantage of trading using opposite China Mobile and China Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, China Sports 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 Sports will offset losses from the drop in China Sports' long position.| China Mobile vs. Guangdong Jingyi Metal | China Mobile vs. Meinian Onehealth Healthcare | China Mobile vs. Mingchen Health Co | China Mobile vs. Shandong Hongchuang Aluminum |
| China Sports vs. PetroChina Co Ltd | China Sports vs. China Mobile Limited | China Sports vs. CNOOC Limited | China Sports vs. Ping An Insurance |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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