Correlation Between China Mobile and Long Yuan
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By analyzing existing cross correlation between China Mobile Limited and Long Yuan Construction, you can compare the effects of market volatilities on China Mobile and Long Yuan 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 Long Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Long Yuan.
Diversification Opportunities for China Mobile and Long Yuan
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Long is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Long Yuan Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Long Yuan Construction 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 Long Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Long Yuan Construction has no effect on the direction of China Mobile i.e., China Mobile and Long Yuan go up and down completely randomly.
Pair Corralation between China Mobile and Long Yuan
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.46 times more return on investment than Long Yuan. However, China Mobile Limited is 2.2 times less risky than Long Yuan. It trades about -0.24 of its potential returns per unit of risk. Long Yuan Construction is currently generating about -0.13 per unit of risk. If you would invest 11,385 in China Mobile Limited on October 23, 2024 and sell it today you would lose (665.00) from holding China Mobile Limited or give up 5.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
China Mobile Limited vs. Long Yuan Construction
Performance |
| Timeline |
| China Mobile Limited |
| Long Yuan Construction |
China Mobile and Long Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Long Yuan
The main advantage of trading using opposite China Mobile and Long Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Long Yuan 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 Long Yuan will offset losses from the drop in Long Yuan's long position.| China Mobile vs. Uroica Mining Safety | China Mobile vs. Fujian Oriental Silver | China Mobile vs. Jinhui Mining Co | China Mobile vs. JCHX Mining Management |
| Long Yuan vs. Chengdu Kanghua Biological | Long Yuan vs. Beijing Wantai Biological | Long Yuan vs. Suzhou Novoprotein Scientific | Long Yuan vs. Aluminum Corp of |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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