Correlation Between China Mobile and Jiangsu Yueda
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By analyzing existing cross correlation between China Mobile Limited and Jiangsu Yueda Investment, you can compare the effects of market volatilities on China Mobile and Jiangsu Yueda 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 Jiangsu Yueda. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Jiangsu Yueda.
Diversification Opportunities for China Mobile and Jiangsu Yueda
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Jiangsu is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Jiangsu Yueda Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yueda Investment 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 Jiangsu Yueda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yueda Investment has no effect on the direction of China Mobile i.e., China Mobile and Jiangsu Yueda go up and down completely randomly.
Pair Corralation between China Mobile and Jiangsu Yueda
Assuming the 90 days trading horizon China Mobile is expected to generate 7.38 times less return on investment than Jiangsu Yueda. In addition to that, China Mobile is 1.25 times more volatile than Jiangsu Yueda Investment. It trades about 0.03 of its total potential returns per unit of risk. Jiangsu Yueda Investment is currently generating about 0.24 per unit of volatility. If you would invest 428.00 in Jiangsu Yueda Investment on November 27, 2024 and sell it today you would earn a total of 20.00 from holding Jiangsu Yueda Investment or generate 4.67% 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. Jiangsu Yueda Investment
Performance |
| Timeline |
| China Mobile Limited |
| Jiangsu Yueda Investment |
China Mobile and Jiangsu Yueda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Jiangsu Yueda
The main advantage of trading using opposite China Mobile and Jiangsu Yueda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Jiangsu Yueda 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 Jiangsu Yueda will offset losses from the drop in Jiangsu Yueda's long position.| China Mobile vs. Caihong Display Devices | China Mobile vs. Beijing Kingsoft Office | China Mobile vs. Suofeiya Home Collection | China Mobile vs. Hua Hong Semiconductor |
| Jiangsu Yueda vs. Ningbo MedicalSystem Biotechnology | Jiangsu Yueda vs. BTG Hotels Group | Jiangsu Yueda vs. Sichuan Hebang Biotechnology | Jiangsu Yueda vs. Guangzhou Dongfang Hotel |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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