Correlation Between China Mobile and Jiangsu Broadcasting
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By analyzing existing cross correlation between China Mobile Limited and Jiangsu Broadcasting Cable, you can compare the effects of market volatilities on China Mobile and Jiangsu Broadcasting 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 Broadcasting. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Jiangsu Broadcasting.
Diversification Opportunities for China Mobile and Jiangsu Broadcasting
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Jiangsu is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Jiangsu Broadcasting Cable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Broadcasting 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 Broadcasting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Broadcasting has no effect on the direction of China Mobile i.e., China Mobile and Jiangsu Broadcasting go up and down completely randomly.
Pair Corralation between China Mobile and Jiangsu Broadcasting
Assuming the 90 days trading horizon China Mobile is expected to generate 1.15 times less return on investment than Jiangsu Broadcasting. But when comparing it to its historical volatility, China Mobile Limited is 1.47 times less risky than Jiangsu Broadcasting. It trades about 0.06 of its potential returns per unit of risk. Jiangsu Broadcasting Cable is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 324.00 in Jiangsu Broadcasting Cable on September 14, 2024 and sell it today you would earn a total of 75.00 from holding Jiangsu Broadcasting Cable or generate 23.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.62% |
| Values | Daily Returns |
China Mobile Limited vs. Jiangsu Broadcasting Cable
Performance |
| Timeline |
| China Mobile Limited |
| Jiangsu Broadcasting |
China Mobile and Jiangsu Broadcasting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Jiangsu Broadcasting
The main advantage of trading using opposite China Mobile and Jiangsu Broadcasting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Jiangsu Broadcasting 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 Broadcasting will offset losses from the drop in Jiangsu Broadcasting's long position.| China Mobile vs. Industrial and Commercial | China Mobile vs. China Construction Bank | China Mobile vs. Agricultural Bank of | China Mobile vs. Bank of China |
| Jiangsu Broadcasting vs. BYD Co Ltd | Jiangsu Broadcasting vs. China Mobile Limited | Jiangsu Broadcasting vs. Agricultural Bank of | Jiangsu Broadcasting 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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