Correlation Between China Mobile and Dalian Thermal
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By analyzing existing cross correlation between China Mobile Limited and Dalian Thermal Power, you can compare the effects of market volatilities on China Mobile and Dalian Thermal 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 Dalian Thermal. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Dalian Thermal.
Diversification Opportunities for China Mobile and Dalian Thermal
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and Dalian is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Dalian Thermal Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dalian Thermal Power 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 Dalian Thermal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dalian Thermal Power has no effect on the direction of China Mobile i.e., China Mobile and Dalian Thermal go up and down completely randomly.
Pair Corralation between China Mobile and Dalian Thermal
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.3 times more return on investment than Dalian Thermal. However, China Mobile Limited is 3.31 times less risky than Dalian Thermal. It trades about 0.05 of its potential returns per unit of risk. Dalian Thermal Power is currently generating about -0.01 per unit of risk. If you would invest 9,805 in China Mobile Limited on August 29, 2024 and sell it today you would earn a total of 737.00 from holding China Mobile Limited or generate 7.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Dalian Thermal Power
Performance |
| Timeline |
| China Mobile Limited |
| Dalian Thermal Power |
China Mobile and Dalian Thermal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Dalian Thermal
The main advantage of trading using opposite China Mobile and Dalian Thermal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Dalian Thermal 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 Dalian Thermal will offset losses from the drop in Dalian Thermal's long position.| China Mobile vs. Chengdu Kanghua Biological | China Mobile vs. Beijing Wantai Biological | China Mobile vs. Suzhou Novoprotein Scientific | China Mobile vs. Aluminum Corp of |
| Dalian Thermal vs. BYD Co Ltd | Dalian Thermal vs. China Mobile Limited | Dalian Thermal vs. Agricultural Bank of | Dalian Thermal vs. Industrial and Commercial |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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