Correlation Between China Mobile and Xiamen Goldenhome
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By analyzing existing cross correlation between China Mobile Limited and Xiamen Goldenhome Co, you can compare the effects of market volatilities on China Mobile and Xiamen Goldenhome 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 Xiamen Goldenhome. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Xiamen Goldenhome.
Diversification Opportunities for China Mobile and Xiamen Goldenhome
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Xiamen is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Xiamen Goldenhome Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Goldenhome 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 Xiamen Goldenhome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Goldenhome has no effect on the direction of China Mobile i.e., China Mobile and Xiamen Goldenhome go up and down completely randomly.
Pair Corralation between China Mobile and Xiamen Goldenhome
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.59 times more return on investment than Xiamen Goldenhome. However, China Mobile Limited is 1.69 times less risky than Xiamen Goldenhome. It trades about 0.02 of its potential returns per unit of risk. Xiamen Goldenhome Co is currently generating about -0.04 per unit of risk. If you would invest 10,175 in China Mobile Limited on January 21, 2025 and sell it today you would earn a total of 1,115 from holding China Mobile Limited or generate 10.96% 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. Xiamen Goldenhome Co
Performance |
| Timeline |
| China Mobile Limited |
| Xiamen Goldenhome |
China Mobile and Xiamen Goldenhome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Xiamen Goldenhome
The main advantage of trading using opposite China Mobile and Xiamen Goldenhome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Xiamen Goldenhome 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 Xiamen Goldenhome will offset losses from the drop in Xiamen Goldenhome's long position.| China Mobile vs. Chongqing Changan Automobile | China Mobile vs. Shanghai Action Education | China Mobile vs. Dongfeng Automobile Co | China Mobile vs. Jiangsu Phoenix Publishing |
| Xiamen Goldenhome vs. Zhongshan Broad Ocean Motor | Xiamen Goldenhome vs. Sunwave Communications Co | Xiamen Goldenhome vs. Jiangsu Broadcasting Cable | Xiamen Goldenhome vs. Dingli Communications Corp |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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