Correlation Between China Mobile and Mengtian Home
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By analyzing existing cross correlation between China Mobile Limited and Mengtian Home Group, you can compare the effects of market volatilities on China Mobile and Mengtian Home 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 Mengtian Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Mengtian Home.
Diversification Opportunities for China Mobile and Mengtian Home
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Mengtian is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Mengtian Home Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mengtian Home Group 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 Mengtian Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mengtian Home Group has no effect on the direction of China Mobile i.e., China Mobile and Mengtian Home go up and down completely randomly.
Pair Corralation between China Mobile and Mengtian Home
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.52 times more return on investment than Mengtian Home. However, China Mobile Limited is 1.91 times less risky than Mengtian Home. It trades about 0.02 of its potential returns per unit of risk. Mengtian Home Group is currently generating about 0.0 per unit of risk. If you would invest 9,980 in China Mobile Limited on September 4, 2024 and sell it today you would earn a total of 567.00 from holding China Mobile Limited or generate 5.68% 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. Mengtian Home Group
Performance |
| Timeline |
| China Mobile Limited |
| Mengtian Home Group |
China Mobile and Mengtian Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Mengtian Home
The main advantage of trading using opposite China Mobile and Mengtian Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Mengtian Home 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 Mengtian Home will offset losses from the drop in Mengtian Home's long position.| China Mobile vs. New China Life | China Mobile vs. Ming Yang Smart | China Mobile vs. 159681 | China Mobile vs. 159005 |
| Mengtian Home vs. Industrial and Commercial | Mengtian Home vs. Agricultural Bank of | Mengtian Home vs. China Construction Bank | Mengtian Home vs. Bank of China |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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