Correlation Between China Mobile and Fuda Alloy
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By analyzing existing cross correlation between China Mobile Limited and Fuda Alloy Materials, you can compare the effects of market volatilities on China Mobile and Fuda Alloy 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 Fuda Alloy. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Fuda Alloy.
Diversification Opportunities for China Mobile and Fuda Alloy
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Fuda is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Fuda Alloy Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuda Alloy Materials 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 Fuda Alloy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuda Alloy Materials has no effect on the direction of China Mobile i.e., China Mobile and Fuda Alloy go up and down completely randomly.
Pair Corralation between China Mobile and Fuda Alloy
Assuming the 90 days trading horizon China Mobile Limited is expected to under-perform the Fuda Alloy. But the stock apears to be less risky and, when comparing its historical volatility, China Mobile Limited is 3.2 times less risky than Fuda Alloy. The stock trades about -0.27 of its potential returns per unit of risk. The Fuda Alloy Materials is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 1,274 in Fuda Alloy Materials on November 1, 2024 and sell it today you would earn a total of 243.00 from holding Fuda Alloy Materials or generate 19.07% 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. Fuda Alloy Materials
Performance |
| Timeline |
| China Mobile Limited |
| Fuda Alloy Materials |
China Mobile and Fuda Alloy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Fuda Alloy
The main advantage of trading using opposite China Mobile and Fuda Alloy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Fuda Alloy 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 Fuda Alloy will offset losses from the drop in Fuda Alloy's long position.| China Mobile vs. Shenzhen Clou Electronics | China Mobile vs. Integrated Electronic Systems | China Mobile vs. Easyhome New Retail | China Mobile vs. CareRay Digital Medical |
| Fuda Alloy vs. China Mobile Limited | Fuda Alloy vs. Shanghai Jinfeng Wine | Fuda Alloy vs. Nanjing Putian Telecommunications | Fuda Alloy vs. Sichuan Fulin Transportation |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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