Correlation Between China Mobile and Jinling Hotel
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By analyzing existing cross correlation between China Mobile Limited and Jinling Hotel Corp, you can compare the effects of market volatilities on China Mobile and Jinling Hotel 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 Jinling Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Jinling Hotel.
Diversification Opportunities for China Mobile and Jinling Hotel
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and Jinling is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Jinling Hotel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinling Hotel Corp 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 Jinling Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinling Hotel Corp has no effect on the direction of China Mobile i.e., China Mobile and Jinling Hotel go up and down completely randomly.
Pair Corralation between China Mobile and Jinling Hotel
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.72 times more return on investment than Jinling Hotel. However, China Mobile Limited is 1.39 times less risky than Jinling Hotel. It trades about 0.05 of its potential returns per unit of risk. Jinling Hotel Corp is currently generating about -0.02 per unit of risk. If you would invest 7,624 in China Mobile Limited on October 25, 2024 and sell it today you would earn a total of 3,208 from holding China Mobile Limited or generate 42.08% 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. Jinling Hotel Corp
Performance |
| Timeline |
| China Mobile Limited |
| Jinling Hotel Corp |
China Mobile and Jinling Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Jinling Hotel
The main advantage of trading using opposite China Mobile and Jinling Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Jinling Hotel 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 Jinling Hotel will offset losses from the drop in Jinling Hotel's long position.| China Mobile vs. Beijing Mainstreets Investment | China Mobile vs. Jointo Energy Investment | China Mobile vs. Zoje Resources Investment | China Mobile vs. Jiangsu Yueda Investment |
| Jinling Hotel vs. Beijing Mainstreets Investment | Jinling Hotel vs. Henan Shuanghui Investment | Jinling Hotel vs. Cansino Biologics | Jinling Hotel vs. Yili Chuanning Biotechnology |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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