Correlation Between China Mobile and Postal Savings
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By analyzing existing cross correlation between China Mobile Limited and Postal Savings Bank, you can compare the effects of market volatilities on China Mobile and Postal Savings 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 Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Postal Savings.
Diversification Opportunities for China Mobile and Postal Savings
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Postal is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Postal Savings Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Postal Savings Bank 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 Postal Savings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Postal Savings Bank has no effect on the direction of China Mobile i.e., China Mobile and Postal Savings go up and down completely randomly.
Pair Corralation between China Mobile and Postal Savings
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.95 times more return on investment than Postal Savings. However, China Mobile Limited is 1.05 times less risky than Postal Savings. It trades about 0.05 of its potential returns per unit of risk. Postal Savings Bank is currently generating about -0.16 per unit of risk. If you would invest 10,229 in China Mobile Limited on August 27, 2024 and sell it today you would earn a total of 111.00 from holding China Mobile Limited or generate 1.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Postal Savings Bank
Performance |
| Timeline |
| China Mobile Limited |
| Postal Savings Bank |
China Mobile and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Postal Savings
The main advantage of trading using opposite China Mobile and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Postal Savings 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 Postal Savings will offset losses from the drop in Postal Savings' long position.| China Mobile vs. Chongqing Shunbo Aluminum | China Mobile vs. Haima Automobile Group | China Mobile vs. Changchun Faway Automobile | China Mobile vs. Sunwave Communications Co |
| Postal Savings vs. China Life Insurance | Postal Savings vs. Piotech Inc A | Postal Savings vs. Dongxing Sec Co | Postal Savings vs. Shanghai OPM Biosciences |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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