Correlation Between China Mobile and Datang Telecom
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By analyzing existing cross correlation between China Mobile Limited and Datang Telecom Technology, you can compare the effects of market volatilities on China Mobile and Datang Telecom 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 Datang Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Datang Telecom.
Diversification Opportunities for China Mobile and Datang Telecom
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Datang is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Datang Telecom Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datang Telecom Technology 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 Datang Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datang Telecom Technology has no effect on the direction of China Mobile i.e., China Mobile and Datang Telecom go up and down completely randomly.
Pair Corralation between China Mobile and Datang Telecom
Assuming the 90 days trading horizon China Mobile Limited is expected to under-perform the Datang Telecom. But the stock apears to be less risky and, when comparing its historical volatility, China Mobile Limited is 2.49 times less risky than Datang Telecom. The stock trades about -0.04 of its potential returns per unit of risk. The Datang Telecom Technology is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 827.00 in Datang Telecom Technology on December 1, 2024 and sell it today you would earn a total of 75.00 from holding Datang Telecom Technology or generate 9.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Datang Telecom Technology
Performance |
| Timeline |
| China Mobile Limited |
| Datang Telecom Technology |
China Mobile and Datang Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Datang Telecom
The main advantage of trading using opposite China Mobile and Datang Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Datang Telecom 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 Datang Telecom will offset losses from the drop in Datang Telecom's long position.| China Mobile vs. Shuhua Sports Co | China Mobile vs. Highbroad Advanced Material | China Mobile vs. Unisplendour Corp | China Mobile vs. Zhongshan Broad Ocean Motor |
| Datang Telecom vs. Longjian Road Bridge | Datang Telecom vs. Road Environment Technology | Datang Telecom vs. XiAn Dagang Road | Datang Telecom vs. Hunan TV Broadcast |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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