Correlation Between China Mobile and China Life
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By analyzing existing cross correlation between China Mobile Limited and China Life Insurance, you can compare the effects of market volatilities on China Mobile and China Life 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 China Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and China Life.
Diversification Opportunities for China Mobile and China Life
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and China is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and China Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Life Insurance 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 China Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Life Insurance has no effect on the direction of China Mobile i.e., China Mobile and China Life go up and down completely randomly.
Pair Corralation between China Mobile and China Life
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.66 times more return on investment than China Life. However, China Mobile Limited is 1.52 times less risky than China Life. It trades about 0.11 of its potential returns per unit of risk. China Life Insurance is currently generating about 0.01 per unit of risk. If you would invest 10,370 in China Mobile Limited on October 26, 2024 and sell it today you would earn a total of 585.00 from holding China Mobile Limited or generate 5.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. China Life Insurance
Performance |
| Timeline |
| China Mobile Limited |
| China Life Insurance |
China Mobile and China Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and China Life
The main advantage of trading using opposite China Mobile and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, China Life 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 China Life will offset losses from the drop in China Life's long position.| China Mobile vs. Guangdong Jingyi Metal | China Mobile vs. Meinian Onehealth Healthcare | China Mobile vs. Mingchen Health Co | China Mobile vs. Shandong Hongchuang Aluminum |
| China Life vs. Industrial and Commercial | China Life vs. Agricultural Bank of | China Life vs. China Construction Bank | China Life vs. Bank of China |
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 Stocks Directory module to find actively traded stocks across global markets.
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