Correlation Between China Mobile and RoadMain T
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By analyzing existing cross correlation between China Mobile Limited and RoadMain T Co, you can compare the effects of market volatilities on China Mobile and RoadMain T 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 RoadMain T. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and RoadMain T.
Diversification Opportunities for China Mobile and RoadMain T
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and RoadMain is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and RoadMain T Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RoadMain T 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 RoadMain T. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RoadMain T has no effect on the direction of China Mobile i.e., China Mobile and RoadMain T go up and down completely randomly.
Pair Corralation between China Mobile and RoadMain T
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.5 times more return on investment than RoadMain T. However, China Mobile Limited is 2.01 times less risky than RoadMain T. It trades about 0.06 of its potential returns per unit of risk. RoadMain T Co is currently generating about 0.02 per unit of risk. If you would invest 7,408 in China Mobile Limited on October 12, 2024 and sell it today you would earn a total of 3,522 from holding China Mobile Limited or generate 47.54% 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. RoadMain T Co
Performance |
| Timeline |
| China Mobile Limited |
| RoadMain T |
China Mobile and RoadMain T Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and RoadMain T
The main advantage of trading using opposite China Mobile and RoadMain T positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, RoadMain T 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 RoadMain T will offset losses from the drop in RoadMain T's long position.| China Mobile vs. ZYF Lopsking Aluminum | China Mobile vs. Xiwang Foodstuffs Co | China Mobile vs. Hefei Metalforming Mach | China Mobile vs. Suzhou Douson Drilling |
| RoadMain T vs. PetroChina Co Ltd | RoadMain T vs. China Mobile Limited | RoadMain T vs. CNOOC Limited | RoadMain T vs. Ping An 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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