Correlation Between China Mobile and Sinotrans
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By analyzing existing cross correlation between China Mobile Limited and Sinotrans Ltd Class, you can compare the effects of market volatilities on China Mobile and Sinotrans 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 Sinotrans. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Sinotrans.
Diversification Opportunities for China Mobile and Sinotrans
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and Sinotrans is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Sinotrans Ltd Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinotrans Class 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 Sinotrans. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinotrans Class has no effect on the direction of China Mobile i.e., China Mobile and Sinotrans go up and down completely randomly.
Pair Corralation between China Mobile and Sinotrans
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 1.37 times more return on investment than Sinotrans. However, China Mobile is 1.37 times more volatile than Sinotrans Ltd Class. It trades about -0.08 of its potential returns per unit of risk. Sinotrans Ltd Class is currently generating about -0.19 per unit of risk. If you would invest 11,215 in China Mobile Limited on October 15, 2024 and sell it today you would lose (285.00) from holding China Mobile Limited or give up 2.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Sinotrans Ltd Class
Performance |
| Timeline |
| China Mobile Limited |
| Sinotrans Class |
China Mobile and Sinotrans Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Sinotrans
The main advantage of trading using opposite China Mobile and Sinotrans positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Sinotrans 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 Sinotrans will offset losses from the drop in Sinotrans' long position.| China Mobile vs. Shuhua Sports Co | China Mobile vs. Hainan Haiqi Transportation | China Mobile vs. Sportsoul Co Ltd | China Mobile vs. Shandong Longquan Pipeline |
| Sinotrans vs. Nanjing Putian Telecommunications | Sinotrans vs. Guangxi Wuzhou Communications | Sinotrans vs. China Mobile Limited | Sinotrans vs. China National Software |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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