Correlation Between China Mobile and Jiangsu Xinri
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By analyzing existing cross correlation between China Mobile Limited and Jiangsu Xinri E Vehicle, you can compare the effects of market volatilities on China Mobile and Jiangsu Xinri 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 Jiangsu Xinri. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Jiangsu Xinri.
Diversification Opportunities for China Mobile and Jiangsu Xinri
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Jiangsu is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Jiangsu Xinri E Vehicle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinri E 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 Jiangsu Xinri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinri E has no effect on the direction of China Mobile i.e., China Mobile and Jiangsu Xinri go up and down completely randomly.
Pair Corralation between China Mobile and Jiangsu Xinri
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.66 times more return on investment than Jiangsu Xinri. However, China Mobile Limited is 1.51 times less risky than Jiangsu Xinri. It trades about 0.05 of its potential returns per unit of risk. Jiangsu Xinri E Vehicle is currently generating about -0.03 per unit of risk. If you would invest 7,192 in China Mobile Limited on September 3, 2024 and sell it today you would earn a total of 3,446 from holding China Mobile Limited or generate 47.91% 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. Jiangsu Xinri E Vehicle
Performance |
| Timeline |
| China Mobile Limited |
| Jiangsu Xinri E |
China Mobile and Jiangsu Xinri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Jiangsu Xinri
The main advantage of trading using opposite China Mobile and Jiangsu Xinri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Jiangsu Xinri 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 Jiangsu Xinri will offset losses from the drop in Jiangsu Xinri'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 |
| Jiangsu Xinri vs. PetroChina Co Ltd | Jiangsu Xinri vs. China Mobile Limited | Jiangsu Xinri vs. Industrial and Commercial | Jiangsu Xinri 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 Stocks Directory module to find actively traded stocks across global markets.
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