Correlation Between China Mobile and Guangzhou Restaurants
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Mobile Limited and Guangzhou Restaurants Group, you can compare the effects of market volatilities on China Mobile and Guangzhou Restaurants 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 Guangzhou Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Guangzhou Restaurants.
Diversification Opportunities for China Mobile and Guangzhou Restaurants
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Guangzhou is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Guangzhou Restaurants Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Restaurants 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 Guangzhou Restaurants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Restaurants has no effect on the direction of China Mobile i.e., China Mobile and Guangzhou Restaurants go up and down completely randomly.
Pair Corralation between China Mobile and Guangzhou Restaurants
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.64 times more return on investment than Guangzhou Restaurants. However, China Mobile Limited is 1.56 times less risky than Guangzhou Restaurants. It trades about 0.03 of its potential returns per unit of risk. Guangzhou Restaurants Group is currently generating about -0.03 per unit of risk. If you would invest 10,080 in China Mobile Limited on September 3, 2024 and sell it today you would earn a total of 558.00 from holding China Mobile Limited or generate 5.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Guangzhou Restaurants Group
Performance |
| Timeline |
| China Mobile Limited |
| Guangzhou Restaurants |
China Mobile and Guangzhou Restaurants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Guangzhou Restaurants
The main advantage of trading using opposite China Mobile and Guangzhou Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Guangzhou Restaurants 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 Guangzhou Restaurants will offset losses from the drop in Guangzhou Restaurants' long position.| China Mobile vs. Andon Health Co | China Mobile vs. Jiangsu Yueda Investment | China Mobile vs. Impulse Qingdao Health | China Mobile vs. Metro Investment Development |
| Guangzhou Restaurants vs. PetroChina Co Ltd | Guangzhou Restaurants vs. China Mobile Limited | Guangzhou Restaurants vs. Industrial and Commercial | Guangzhou Restaurants vs. China Life 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |