Correlation Between China Mobile and China Publishing
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By analyzing existing cross correlation between China Mobile Limited and China Publishing Media, you can compare the effects of market volatilities on China Mobile and China Publishing 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 Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and China Publishing.
Diversification Opportunities for China Mobile and China Publishing
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and China is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and China Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Publishing Media 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 Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Publishing Media has no effect on the direction of China Mobile i.e., China Mobile and China Publishing go up and down completely randomly.
Pair Corralation between China Mobile and China Publishing
Assuming the 90 days trading horizon China Mobile is expected to generate 1.24 times less return on investment than China Publishing. But when comparing it to its historical volatility, China Mobile Limited is 2.05 times less risky than China Publishing. It trades about 0.06 of its potential returns per unit of risk. China Publishing Media is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 494.00 in China Publishing Media on October 15, 2024 and sell it today you would earn a total of 156.00 from holding China Publishing Media or generate 31.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. China Publishing Media
Performance |
| Timeline |
| China Mobile Limited |
| China Publishing Media |
China Mobile and China Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and China Publishing
The main advantage of trading using opposite China Mobile and China Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, China Publishing 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 Publishing will offset losses from the drop in China Publishing's 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 |
| China Publishing vs. Xiangyu Medical Co | China Publishing vs. Holitech Technology Co | China Publishing vs. Chongqing Brewery Co | China Publishing vs. Sinofibers Technology 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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