Correlation Between China Mobile and Anhui Transport
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By analyzing existing cross correlation between China Mobile Limited and Anhui Transport Consulting, you can compare the effects of market volatilities on China Mobile and Anhui Transport 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 Anhui Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Anhui Transport.
Diversification Opportunities for China Mobile and Anhui Transport
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Anhui is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Anhui Transport Consulting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Transport Cons 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 Anhui Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Transport Cons has no effect on the direction of China Mobile i.e., China Mobile and Anhui Transport go up and down completely randomly.
Pair Corralation between China Mobile and Anhui Transport
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.92 times more return on investment than Anhui Transport. However, China Mobile Limited is 1.09 times less risky than Anhui Transport. It trades about -0.24 of its potential returns per unit of risk. Anhui Transport Consulting is currently generating about -0.23 per unit of risk. If you would invest 11,489 in China Mobile Limited on October 25, 2024 and sell it today you would lose (657.00) from holding China Mobile Limited or give up 5.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Anhui Transport Consulting
Performance |
| Timeline |
| China Mobile Limited |
| Anhui Transport Cons |
China Mobile and Anhui Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Anhui Transport
The main advantage of trading using opposite China Mobile and Anhui Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Anhui Transport 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 Anhui Transport will offset losses from the drop in Anhui Transport's long position.| China Mobile vs. Beijing Mainstreets Investment | China Mobile vs. Jointo Energy Investment | China Mobile vs. Zoje Resources Investment | China Mobile vs. Jiangsu Yueda Investment |
| Anhui Transport vs. Kweichow Moutai Co | Anhui Transport vs. Contemporary Amperex Technology | Anhui Transport vs. Beijing Roborock Technology | Anhui Transport vs. BYD Co Ltd |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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