Correlation Between China Mobile and Northern United
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By analyzing existing cross correlation between China Mobile Limited and Northern United Publishing, you can compare the effects of market volatilities on China Mobile and Northern United 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 Northern United. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Northern United.
Diversification Opportunities for China Mobile and Northern United
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Northern is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Northern United Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern United Publ 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 Northern United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern United Publ has no effect on the direction of China Mobile i.e., China Mobile and Northern United go up and down completely randomly.
Pair Corralation between China Mobile and Northern United
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.34 times more return on investment than Northern United. However, China Mobile Limited is 2.91 times less risky than Northern United. It trades about 0.27 of its potential returns per unit of risk. Northern United Publishing is currently generating about -0.06 per unit of risk. If you would invest 10,636 in China Mobile Limited on September 28, 2024 and sell it today you would earn a total of 802.00 from holding China Mobile Limited or generate 7.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Northern United Publishing
Performance |
| Timeline |
| China Mobile Limited |
| Northern United Publ |
China Mobile and Northern United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Northern United
The main advantage of trading using opposite China Mobile and Northern United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Northern United 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 Northern United will offset losses from the drop in Northern United's long position.| China Mobile vs. Chengdu Kanghua Biological | China Mobile vs. Beijing Wantai Biological | China Mobile vs. Suzhou Novoprotein Scientific | China Mobile vs. COL Digital Publishing |
| Northern United vs. PetroChina Co Ltd | Northern United vs. China Mobile Limited | Northern United vs. CNOOC Limited | Northern United vs. Ping An Insurance |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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