Correlation Between China Mobile and G Bits
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By analyzing existing cross correlation between China Mobile Limited and G bits Network Technology, you can compare the effects of market volatilities on China Mobile and G Bits 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 G Bits. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and G Bits.
Diversification Opportunities for China Mobile and G Bits
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and 603444 is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and G bits Network Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G bits Network 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 G Bits. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G bits Network has no effect on the direction of China Mobile i.e., China Mobile and G Bits go up and down completely randomly.
Pair Corralation between China Mobile and G Bits
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.46 times more return on investment than G Bits. However, China Mobile Limited is 2.16 times less risky than G Bits. It trades about 0.05 of its potential returns per unit of risk. G bits Network Technology is currently generating about -0.11 per unit of risk. If you would invest 10,229 in China Mobile Limited on August 27, 2024 and sell it today you would earn a total of 111.00 from holding China Mobile Limited or generate 1.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. G bits Network Technology
Performance |
| Timeline |
| China Mobile Limited |
| G bits Network |
China Mobile and G Bits Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and G Bits
The main advantage of trading using opposite China Mobile and G Bits positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, G Bits 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 G Bits will offset losses from the drop in G Bits' long position.| China Mobile vs. Yunnan Jianzhijia Health Chain | China Mobile vs. Humanwell Healthcare Group | China Mobile vs. Lotus Health Group | China Mobile vs. Nexchip Semiconductor Corp |
| G Bits vs. Shanghai Zhangjiang Hi Tech | G Bits vs. Guangzhou Haige Communications | G Bits vs. Fujian Newland Computer | G Bits vs. Fiberhome Telecommunication Technologies |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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