Correlation Between China Mobile and Chahua Modern
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By analyzing existing cross correlation between China Mobile Limited and Chahua Modern Housewares, you can compare the effects of market volatilities on China Mobile and Chahua Modern 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 Chahua Modern. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Chahua Modern.
Diversification Opportunities for China Mobile and Chahua Modern
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and Chahua is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Chahua Modern Housewares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chahua Modern Housewares 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 Chahua Modern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chahua Modern Housewares has no effect on the direction of China Mobile i.e., China Mobile and Chahua Modern go up and down completely randomly.
Pair Corralation between China Mobile and Chahua Modern
Assuming the 90 days trading horizon China Mobile is expected to generate 2.61 times less return on investment than Chahua Modern. But when comparing it to its historical volatility, China Mobile Limited is 1.87 times less risky than Chahua Modern. It trades about 0.05 of its potential returns per unit of risk. Chahua Modern Housewares is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 840.00 in Chahua Modern Housewares on September 3, 2024 and sell it today you would earn a total of 1,347 from holding Chahua Modern Housewares or generate 160.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Chahua Modern Housewares
Performance |
| Timeline |
| China Mobile Limited |
| Chahua Modern Housewares |
China Mobile and Chahua Modern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Chahua Modern
The main advantage of trading using opposite China Mobile and Chahua Modern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Chahua Modern 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 Chahua Modern will offset losses from the drop in Chahua Modern's long position.| China Mobile vs. Andon Health Co | China Mobile vs. Jiangsu Yueda Investment | China Mobile vs. Impulse Qingdao Health | China Mobile vs. Metro Investment Development |
| Chahua Modern vs. PetroChina Co Ltd | Chahua Modern vs. China Mobile Limited | Chahua Modern vs. Industrial and Commercial | Chahua Modern vs. China Life Insurance |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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