Correlation Between China Mobile and Anji Foodstuff
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By analyzing existing cross correlation between China Mobile Limited and Anji Foodstuff Co, you can compare the effects of market volatilities on China Mobile and Anji Foodstuff 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 Anji Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Anji Foodstuff.
Diversification Opportunities for China Mobile and Anji Foodstuff
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Anji is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Anji Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anji Foodstuff 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 Anji Foodstuff. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anji Foodstuff has no effect on the direction of China Mobile i.e., China Mobile and Anji Foodstuff go up and down completely randomly.
Pair Corralation between China Mobile and Anji Foodstuff
Assuming the 90 days trading horizon China Mobile is expected to generate 1.72 times less return on investment than Anji Foodstuff. But when comparing it to its historical volatility, China Mobile Limited is 1.96 times less risky than Anji Foodstuff. It trades about 0.15 of its potential returns per unit of risk. Anji Foodstuff Co is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 788.00 in Anji Foodstuff Co on August 29, 2024 and sell it today you would earn a total of 52.00 from holding Anji Foodstuff Co or generate 6.6% 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. Anji Foodstuff Co
Performance |
| Timeline |
| China Mobile Limited |
| Anji Foodstuff |
China Mobile and Anji Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Anji Foodstuff
The main advantage of trading using opposite China Mobile and Anji Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Anji Foodstuff 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 Anji Foodstuff will offset losses from the drop in Anji Foodstuff's long position.| China Mobile vs. Industrial and Commercial | China Mobile vs. Agricultural Bank of | China Mobile vs. China Construction Bank | China Mobile vs. Bank of China |
| Anji Foodstuff vs. PetroChina Co Ltd | Anji Foodstuff vs. China Mobile Limited | Anji Foodstuff vs. Ping An Insurance | Anji Foodstuff vs. China Petroleum Chemical |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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