Correlation Between China Mobile and Chinese Universe
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By analyzing existing cross correlation between China Mobile Limited and Chinese Universe Publishing, you can compare the effects of market volatilities on China Mobile and Chinese Universe 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 Chinese Universe. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Chinese Universe.
Diversification Opportunities for China Mobile and Chinese Universe
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Chinese is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Chinese Universe Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chinese Universe Pub 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 Chinese Universe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chinese Universe Pub has no effect on the direction of China Mobile i.e., China Mobile and Chinese Universe go up and down completely randomly.
Pair Corralation between China Mobile and Chinese Universe
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.89 times more return on investment than Chinese Universe. However, China Mobile Limited is 1.13 times less risky than Chinese Universe. It trades about -0.08 of its potential returns per unit of risk. Chinese Universe Publishing is currently generating about -0.38 per unit of risk. If you would invest 11,128 in China Mobile Limited on October 18, 2024 and sell it today you would lose (289.00) from holding China Mobile Limited or give up 2.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Chinese Universe Publishing
Performance |
| Timeline |
| China Mobile Limited |
| Chinese Universe Pub |
China Mobile and Chinese Universe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Chinese Universe
The main advantage of trading using opposite China Mobile and Chinese Universe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Chinese Universe 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 Chinese Universe will offset losses from the drop in Chinese Universe's long position.| China Mobile vs. Hongrun Construction Group | China Mobile vs. Ningbo Construction Co | China Mobile vs. Anhui Huilong Agricultural | China Mobile vs. Gifore Agricultural Machinery |
| Chinese Universe vs. TianJin 712 Communication | Chinese Universe vs. Bank of Communications | Chinese Universe vs. Guangdong Shenglu Telecommunication | Chinese Universe vs. Zhongyin Babi Food |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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