Correlation Between China Mobile and Anhui Jianghuai
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By analyzing existing cross correlation between China Mobile Limited and Anhui Jianghuai Automobile, you can compare the effects of market volatilities on China Mobile and Anhui Jianghuai 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 Anhui Jianghuai. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Anhui Jianghuai.
Diversification Opportunities for China Mobile and Anhui Jianghuai
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Anhui is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Anhui Jianghuai Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Jianghuai Auto 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 Anhui Jianghuai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Jianghuai Auto has no effect on the direction of China Mobile i.e., China Mobile and Anhui Jianghuai go up and down completely randomly.
Pair Corralation between China Mobile and Anhui Jianghuai
Assuming the 90 days trading horizon China Mobile is expected to generate 9.02 times less return on investment than Anhui Jianghuai. But when comparing it to its historical volatility, China Mobile Limited is 2.88 times less risky than Anhui Jianghuai. It trades about 0.04 of its potential returns per unit of risk. Anhui Jianghuai Automobile is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,320 in Anhui Jianghuai Automobile on October 20, 2024 and sell it today you would earn a total of 2,517 from holding Anhui Jianghuai Automobile or generate 190.68% 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. Anhui Jianghuai Automobile
Performance |
| Timeline |
| China Mobile Limited |
| Anhui Jianghuai Auto |
China Mobile and Anhui Jianghuai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Anhui Jianghuai
The main advantage of trading using opposite China Mobile and Anhui Jianghuai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Anhui Jianghuai 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 Anhui Jianghuai will offset losses from the drop in Anhui Jianghuai's long position.| China Mobile vs. Glodon Software Co | China Mobile vs. Dezhan HealthCare Co | China Mobile vs. Andon Health Co | China Mobile vs. Anhui Huaren Health |
| Anhui Jianghuai vs. Threes Company Media | Anhui Jianghuai vs. Guangzhou KingTeller Technology | Anhui Jianghuai vs. Digiwin Software Co | Anhui Jianghuai vs. Olympic Circuit Technology |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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