Correlation Between China Mobile and Zhejiang Huayou
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By analyzing existing cross correlation between China Mobile Limited and Zhejiang Huayou Cobalt, you can compare the effects of market volatilities on China Mobile and Zhejiang Huayou 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 Zhejiang Huayou. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Zhejiang Huayou.
Diversification Opportunities for China Mobile and Zhejiang Huayou
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and Zhejiang is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Zhejiang Huayou Cobalt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Huayou Cobalt 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 Zhejiang Huayou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Huayou Cobalt has no effect on the direction of China Mobile i.e., China Mobile and Zhejiang Huayou go up and down completely randomly.
Pair Corralation between China Mobile and Zhejiang Huayou
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.67 times more return on investment than Zhejiang Huayou. However, China Mobile Limited is 1.49 times less risky than Zhejiang Huayou. It trades about 0.05 of its potential returns per unit of risk. Zhejiang Huayou Cobalt is currently generating about -0.05 per unit of risk. If you would invest 7,408 in China Mobile Limited on October 16, 2024 and sell it today you would earn a total of 3,432 from holding China Mobile Limited or generate 46.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Zhejiang Huayou Cobalt
Performance |
| Timeline |
| China Mobile Limited |
| Zhejiang Huayou Cobalt |
China Mobile and Zhejiang Huayou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Zhejiang Huayou
The main advantage of trading using opposite China Mobile and Zhejiang Huayou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Zhejiang Huayou 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 Zhejiang Huayou will offset losses from the drop in Zhejiang Huayou's long position.| China Mobile vs. Shuhua Sports Co | China Mobile vs. Hainan Haiqi Transportation | China Mobile vs. Sportsoul Co Ltd | China Mobile vs. Shandong Longquan Pipeline |
| Zhejiang Huayou vs. Zijin Mining Group | Zhejiang Huayou vs. Wanhua Chemical Group | Zhejiang Huayou vs. Baoshan Iron Steel | Zhejiang Huayou vs. Shandong Gold Mining |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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