Correlation Between China Mobile and Guobo Electronics
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By analyzing existing cross correlation between China Mobile Limited and Guobo Electronics Co, you can compare the effects of market volatilities on China Mobile and Guobo Electronics 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 Guobo Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Guobo Electronics.
Diversification Opportunities for China Mobile and Guobo Electronics
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Guobo is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Guobo Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guobo Electronics 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 Guobo Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guobo Electronics has no effect on the direction of China Mobile i.e., China Mobile and Guobo Electronics go up and down completely randomly.
Pair Corralation between China Mobile and Guobo Electronics
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.63 times more return on investment than Guobo Electronics. However, China Mobile Limited is 1.6 times less risky than Guobo Electronics. It trades about 0.05 of its potential returns per unit of risk. Guobo Electronics Co is currently generating about -0.01 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. Guobo Electronics Co
Performance |
| Timeline |
| China Mobile Limited |
| Guobo Electronics |
China Mobile and Guobo Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Guobo Electronics
The main advantage of trading using opposite China Mobile and Guobo Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Guobo Electronics 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 Guobo Electronics will offset losses from the drop in Guobo Electronics' 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 |
| Guobo Electronics vs. Yankershop Food Co | Guobo Electronics vs. Jiangnan Mould Plastic | Guobo Electronics vs. Xinjiang Tianrun Dairy | Guobo Electronics vs. Great Sun Foods Co |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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