Correlation Between China Mobile and Jinhui Liquor
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By analyzing existing cross correlation between China Mobile Limited and Jinhui Liquor Co, you can compare the effects of market volatilities on China Mobile and Jinhui Liquor 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 Jinhui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Jinhui Liquor.
Diversification Opportunities for China Mobile and Jinhui Liquor
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Jinhui is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Jinhui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Liquor 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 Jinhui Liquor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhui Liquor has no effect on the direction of China Mobile i.e., China Mobile and Jinhui Liquor go up and down completely randomly.
Pair Corralation between China Mobile and Jinhui Liquor
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.48 times more return on investment than Jinhui Liquor. However, China Mobile Limited is 2.06 times less risky than Jinhui Liquor. It trades about 0.05 of its potential returns per unit of risk. Jinhui Liquor Co is currently generating about 0.02 per unit of risk. If you would invest 9,805 in China Mobile Limited on August 29, 2024 and sell it today you would earn a total of 831.00 from holding China Mobile Limited or generate 8.48% 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. Jinhui Liquor Co
Performance |
| Timeline |
| China Mobile Limited |
| Jinhui Liquor |
China Mobile and Jinhui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Jinhui Liquor
The main advantage of trading using opposite China Mobile and Jinhui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Jinhui Liquor 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 Jinhui Liquor will offset losses from the drop in Jinhui Liquor'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 |
| Jinhui Liquor vs. PetroChina Co Ltd | Jinhui Liquor vs. China Mobile Limited | Jinhui Liquor vs. Ping An Insurance | Jinhui Liquor 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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