Correlation Between China Mobile and BeiGene
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By analyzing existing cross correlation between China Mobile Limited and BeiGene, you can compare the effects of market volatilities on China Mobile and BeiGene 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 BeiGene. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and BeiGene.
Diversification Opportunities for China Mobile and BeiGene
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and BeiGene is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and BeiGene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeiGene 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 BeiGene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BeiGene has no effect on the direction of China Mobile i.e., China Mobile and BeiGene go up and down completely randomly.
Pair Corralation between China Mobile and BeiGene
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.41 times more return on investment than BeiGene. However, China Mobile Limited is 2.47 times less risky than BeiGene. It trades about 0.05 of its potential returns per unit of risk. BeiGene is currently generating about -0.05 per unit of risk. If you would invest 10,229 in China Mobile Limited on August 27, 2024 and sell it today you would earn a total of 111.00 from holding China Mobile Limited or generate 1.09% 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. BeiGene
Performance |
| Timeline |
| China Mobile Limited |
| BeiGene |
China Mobile and BeiGene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and BeiGene
The main advantage of trading using opposite China Mobile and BeiGene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, BeiGene 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 BeiGene will offset losses from the drop in BeiGene's long position.| China Mobile vs. Yunnan Jianzhijia Health Chain | China Mobile vs. Humanwell Healthcare Group | China Mobile vs. Lotus Health Group | China Mobile vs. Nexchip Semiconductor Corp |
| BeiGene vs. China Asset Management | BeiGene vs. Shandong Hi Speed RoadBridge | BeiGene vs. Road Environment Technology | BeiGene vs. Cicc Fund Management |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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