Correlation Between China Mobile and New China
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Mobile Limited and New China Life, you can compare the effects of market volatilities on China Mobile and New China 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 New China. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and New China.
Diversification Opportunities for China Mobile and New China
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and New is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and New China Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New China Life 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 New China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New China Life has no effect on the direction of China Mobile i.e., China Mobile and New China go up and down completely randomly.
Pair Corralation between China Mobile and New China
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.42 times more return on investment than New China. However, China Mobile Limited is 2.38 times less risky than New China. It trades about 0.17 of its potential returns per unit of risk. New China Life is currently generating about -0.04 per unit of risk. If you would invest 10,204 in China Mobile Limited on September 12, 2024 and sell it today you would earn a total of 454.00 from holding China Mobile Limited or generate 4.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
China Mobile Limited vs. New China Life
Performance |
| Timeline |
| China Mobile Limited |
| New China Life |
China Mobile and New China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and New China
The main advantage of trading using opposite China Mobile and New China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, New China 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 New China will offset losses from the drop in New China's long position.| China Mobile vs. Kweichow Moutai Co | China Mobile vs. Shenzhen Mindray Bio Medical | China Mobile vs. G bits Network Technology | China Mobile vs. Beijing Roborock Technology |
| New China vs. HeBei Jinniu Chemical | New China vs. Zhejiang Construction Investment | New China vs. Lianhe Chemical Technology | New China vs. Nuode Investment Co |
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.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |